By David Dayen
September 20, 2013
| A few months ago, Ceith and Louise Sinclair of Altadena, California,
were told that their home had been sold. It was the first time they’d
heard that it was for sale.
Their mortgage servicer, Nationstar,
foreclosed on them without their knowledge, and sold the house to an
investment company. If it wasn’t for the Sinclairs going to a
local ABC affiliate
and describing their horror story, they would have been thrown out on
the street, despite never missing a mortgage payment. It’s impossible to
know how many homeowners who didn’t get the media to pick up their tale
have dealt with a similar catastrophe, and eventually lost their home.
As finance writer Barry Ritholtz
has explained ,
home purchases involve a series of precise safeguards, designed to
protect property rights and prevent situations where borrowers who are
perfect on their payments get evicted. “In a nation of laws, contract
and property rights, there is no room for errors,” Ritholtz writes. “The
only way these errors could have occurred is if several people involved
in the process committed criminal fraud.”