Occupy DC Protests Freddie Mac Foreclosure of One Family

Posted on February 29, 2012

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Axsmith Law blog on foreclosure and bankruptcy.

An elderly woman is being championed by Occupy DC because Freddie Mac foreclosed on her home even though she had the ability to pay her mortgage. Why? Because they repeatedly lost her paperwork.

Sadly, losing the paperwork of homeowners is a very frequent occurrence during the loan modification process. More than that. homeowners were often told to purposely stop paying their mortgages to go into default to qualify for a loan modification program. Once in that program, lenders, Fannie Mae and Freddie Mac would very frequently lose all paperwork associated with a loan modification. By the time the home owner found out what had happened, the paperwork would need to be updated and resubmitted all over again.

Many thousands of people lost their homes this way.

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