Power Breakfast: Foreclosure investigation limited in Georgia, governor’s debate, airport, federal deficit, Yahoo

Observers of the state’s financial industry say they expect limited impact in Georgia from the joint investigation by all 50 states into foreclosure practices of major mortgage lenders, AJC staffer Scott Trubey reports.

Georgia is one of 27 states that do not require a judicial hearing for lenders to foreclose on borrowers in default and the breakdowns in paperwork alleged at some of the nation’s biggest mortgage owners don’t apply to cases in this state, Trubey writes.

But advocates for borrowers say a moratorium on evictions is probably necessary to make sure banks are getting it right. One legal aid official said in a small number of Georgia foreclosure cases, lenders have had issues with their paperwork, Trubey reports.

Foreclosures continue to pile up in Georgia. The state ranked seventh in the nation for foreclosures in the third quarter, according to a report issued Thursday by RealtyTrac.

One in every 98 households was involved in some form of foreclosure proceedings, up 8.3 percent from second quarter and up 23.5 percent from the same period a year ago, Trubey reports.

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4 comments Add your comment

Laurie

October 15th, 2010
8:18 am

Why is Georgia even bothering with an investigation into foreclosure practices of major mortgage lenders? State lawmakers obviously do not care enough about citizens of this state to change the laws to force theses companies to file paperwork with the courts before throwing people out of their homes. If I were in foreclosure, I would file suit to make the lender prove they own the mortgage. Chances are they wouldn’t be able to do it.

TnGelding

October 15th, 2010
8:39 am

Tragic. A blot on capitalism that will be hard to erase. Much of the problem was self-inflicted, however.

JD

October 15th, 2010
9:51 am

“If I were in foreclosure, I would file suit to make the lender prove they own the mortgage. Chances are they wouldn’t be able to do it.”

Chances are … you’d still loose your home and your lawsuit would go no where (except deeper in debt to line the lawyer’s pocket) !

Hank

October 17th, 2010
6:54 am

Roy Barnes did not and would not work to change these archaic Georgia Laws that mandate this absurd non judicial foreclosure system, before when he was governor, although he was urged to do so by many of us. Therefore, the non-sense that takes place on the steps of the Courthouse in 159 GA Counties on the first Tuesday of each month remains in force. Remember the Democrats controlled both Houses of the GA General Assembly at that time. However, they were busy looking out for their own selfish wellbeing instead of that of the people. One of their ringleaders, I think is still in the U.S. Penitentiary.
Republicans win in Georgia on November 2, 2010 by default, big sweep.