The media is abuzz with recent announcements by Bank of America, GMAC Mortgage and JP Morgan-Chase.  Each of the three financial giants says it is slowing or halting foreclosures in 23 states.  Does this mean the crisis is over? 

Absolutely not!

It does mean that what we said a couple of weeks ago right here on this blog…

…the bank trying to foreclose on your home may have no valid legal claim to the money you owe or to your home. It takes a trained eye to spot the surprisingly frequent manufacturing of evidence the banks and their attorneys will engage in solely for the purpose of making the foreclosure suit difficult to defend…

So if you’re behind on your BoA, GMAC or JPM-Chase mortgage can you breathe easy?  Is your case over if you’re already being foreclosed upon by one of these giants?

The answers are no, and no.  Here’s why:

• As a result of these lenders’ decisions, the foreclosure process may well be delayed but will by no means be finished! Our recent experience has showed that at most, the banks will spend the next few weeks and months revising affidavits and other documents (perhaps even forging or otherwise falsifying them), and then quickly re-submit them to the courts. No doubt the process will keep moving forward and your home will remain at risk.

• According to a recent New York Times article, “Spokesmen for [Bank of America] said that they were uncertain how many cases the lender currently had in court. They provided no timeline or explanation for the freeze, saying only that the bank planned to eventually resubmit all the cases.” (emphasis added).

And we’re not alone in this thinking.  The Wall Street Journal reports, "No one expects lenders and investors to throw in the towel and systematically write-down millions of mortgages. For the small percentage of homes occupied by owners who fight foreclosure, the documents issue 'will delay the foreclosure, but won't change the outcome,' said Jay Brinkmann, chief economist with Mortgage Bankers Association."

Now, here’s why you can see this as a window of opportunity:

• That same Times article we quoted above also reported, “That could mean tens of thousands of foreclosure cases would be in limbo for months or, if the consumers in default hire lawyers, years.” 

This means that working with an experienced foreclosure defense law firm likely will keep you in your home longer, not just the 60 days or so the banks are reviewing their foreclosure cases. We currently have cases in which homes remain in the hands of the homeowners approaching four years.

Furthermore, it’s important to note that these institutions officially may be “voluntarily” slowing their foreclosures; however it was a matter of time before they would have been forced to in most of the 23 states where the slowdowns are occurring.  More from the Times:

• “Before Bank of America’s announcement, Richard Blumenthal, the Connecticut attorney general, asked judges in his state to put a halt to all foreclosures for 60 days. Connecticut is one of the 23 states where foreclosure is a judicial matter. Others include Illinois, Florida, New Jersey and New York.”

• “California’s attorney general, Jerry Brown, said that Chase should stop any foreclosures in the state until it proved that it was following the law. Mr. Brown, who is a candidate for governor, earlier made the same demand of GMAC.” 

Prior to these institutions being pressured by Attorneys General into admitting to their negligence and overall sloppiness in preparing their lawsuits against homeowners, Joseph P. McCaffery & Associates was among the handful handful of Illinois foreclosure defense law firms calling them on their bluffs and blatant manufacturing of evidence.  We know what to look for and are prepared for the kinds of claims they will try to push through the court system next.

On many of the several-hundred foreclosure cases we’ve handled, which involved the same kind of rubber-stamping of lawsuits that the AGs have temporarily forced the institutions to stop, the comeback to our defenses often involved presentation of fraudulent, back-dated and forged documents. Yes, forgery is a felony, and bankers will go to all lengths to win this battle they’ve forged on homeowners and communities.

If you have a BoA mortgage – especially those tied to BoA’s takeover of the now-defunct Countrywide – or a GMAC or JPM-Chase mortgage, our experience suggests you are especially vulnerable to these illegal tactics.

By the way, in response to these announcements, reps from a couple of other mortgage giants – Citigroup, Inc., and Wells-Fargo & Co. – have made claims in the press that their foreclosures are on solid ground.  At least that’s what they’re saying for now.