Bank of America forecloses on the wrong house.

B of A was served with a law suit last week alleging that they took possession of the wrong house after foreclosing on a nearby property. A clerical error led B of A employees to remove all the contents and change the locks on the wrong property.

Mass. Couple Sue Bank of America Alleging Erroneous Foreclosure Attempt

Strategic defaults OK for big corporations but not homeowners?

Watch this comparison of investors walking away from a $5.4 billion mortgage and the morality of walking away from your own mortgage.

Short Sale Kickbacks

The big banks have found another way to circumvent the law and squeeze more money out of their debt slaves.  Watch this report from CNBC:


http://www.cnbc.com/id/34877347

Getting an FHA loan after doing a short sale.

If you are planning to do a short sale on your home then you need to take into consideration the effects this will have on your credit and your ability to get an FHA loan.  FHA has become the new "sub-prime" and to qualify for an FHA loan you must not have done a short sale “to take advantage of declining market conditions” or to purchase another property at a reduced price.

When you do buy another house you ought to work with a lender that specializes in short sale financing.  Short sale lenders have a better understanding f the complexities of this type of transaction.

Starting in April 2010, lenders will only have 10 days to respond to a short sale offer.  This will speed up the process.