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May 31, 2011

Feds look to give trustees more power

"Federal legislation introduced last week is giving credence to a battle being fought
in Middle Tennessee by bankruptcy trustee Henry "Hank" Hildebrand.

Hildebrand was the subject of a Friday story related to a growing movement across
the country: Judges and debtors who force mortgage companies to produce a physical
note before foreclosing on a home.

Because in Tennessee judges aren't involved in the foreclosure process, it's been
bankruptcy trustees here who have been fighting that battle instead.

In Middle Tennessee, Hildebrand said he's had about 60 cases this year where a
lender couldn't produce the actual note, though he is seeing some movement towards
compliance.

The legislation, introduced by Sen. Patrick Leahy, D-Vt., would give the
U.S. Trustee Program, the arm of the Justice Department that oversees foreclosures,
the power to sanction servicers and lenders who submit false claims, overstate
what's owed or don't produce proper documentation."

Read more here.

May 31, 2011 in Current Affairs | Permalink

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