Even when there are no robo-signer issues or affidavits in question, there are many gray areas in the foreclosure process. One of these is the right of banks to break and enter their own property in order to examine a house for signs of occupancy and protect their investment if the home is abandoned[1]. Unfortunately for lenders, servicers and homeowners, the entire process can be one big catch-22 if all parties involved are not on the same page. In fact, there have been reports and even lawsuits filed when homeowners returned to their homes to find that their belongings had been removed by overzealous servicers and locks changed, while, conversely, lenders often report massive damage done by squatters or other vandals if foreclosed homes are left unsupervised for too long.
Federal and state laws allow banks to enter homes if it appears that the home has been abandoned[2]. The issue arises when a lender or a loan servicer – often the party actually in charge of determining if a property has been abandoned – has difficulty determining from the exterior of the home if it is, in fact, abandoned. If the bank breaks in and the home is still occupied, then the lender has committed a crime. The issue gets murkier if the home has all the earmarks of being abandoned but still contains possessions that homeowners later return to try and reclaim. Lenders claim that they have to make a call and either clear the home, change the locks and begin protecting their property or risk serious loss in value on a property that already is losing money by virtue of its delinquent loan status. Homeowners are claiming that they simply are returning home from work or vacation to find all their belongings gone and their homes secured with new locks. Presently, homeowners must sue the lenders for return of their belongings – a process which is frequently costly and unsuccessful.
Do you think that lenders should be able to break and enter homes? If so, how can this process be made more transparent?
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[1] http://pr-usa.net/index.php?option=com_content&task=view&id=660758&Itemid=29
[2] http://uspolitics.einnews.com/247pr/202327
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