Simplifying Paperwork Would Solve Foreclosure Mess - Page 2
By this point, I’m sure most just sign and want to be out of there.
And that’s where we return to the foreclosure mess. Just like buying (or leasing) a car, buying a house requires piles of paperwork, and I can see how it’s tough to keep track of all of it. Putting it in a folder would make sense to me, but there’s not a folder big enough to hold it all and the documents have to go to multiple people and entities, and hence, the problem.
In the end, most people put trust in the lender and the institution providing the loan. Until the last few years, most of us figured big banks were refutable and the people they employed knew what they were doing.
My grandpa spent nearly 30 years in real estate starting in the 1950s, and I asked him recently if the paperwork was always this overwhelming. Grandpa said he would write out the contracts himself and he would go over the paperwork with the homebuyer. He would then suggest the buyer take the contract to an attorney to look it over and then come back to firm up the deal. Grandpa said the buyers always felt comfortable and there was no rush.
Rushing is one of the root causes of the incompetence, and it’s not surprising in our current environment, where everyone is in a hurry.
Lenders need to adopt the old-school ways of my grandpa’s cautious generation. It might be saving face, but JPMorgan Chase announced on Wednesday that it had stopped Mortgage Electronic Registration System (MERS), an electronic system that speeds up the foreclosure process.
By bringing back the human element, maybe it will slow down the process, and that’s even more reason to simplify things. Simplifying the process might be wishful thinking, but there will at least be a lot of change in the way foreclosures are handled.
In the meantime, as borrowers, we need to make sure we understand the entire process, who is involved, what we’re signing and keep good records. If only lenders had done the same, this mess could have been avoided.