The dual tracking T&T was engaging in was in giving homeowners the impression, that while they are participating in modification negotiations, the lender will work with the homeowner to avoid foreclosure. That was a demonstrably false as T&T was ALSO initiating the foreclosures at the same time they're telling the borrower the lender is working with them. I think that its at least arguable that is walking right over 4.1, .2 , .3, .4 there... .but that is just me...a guy who doesn't practice law in that area...but did pass the bar.
Its a bait and switch... it wasn't "illegal" at the time, but it sure was pretty damn shady.
Really? from the stuff I've seen in Macomb and Wayne county, that is almost never the case. The situation seems to usually be the home was purchased for 200kish, note was some sort of stupid 0 down/ interest only/5 yr Arm garbage, house is now worth 85-90k on a good day, lender owes well over 200k [[unpaid principle +late fees, unpaid taxes and insurance..etc.) ... bank buys it at the sheriff's sale for about FMV. Then waits out the redemption period.I don't see too many circumstances where residential lenders bid anything less than the full debt.
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