President Barack Obama has appeared to intervene because of the foreclosure bill deemed by many as very controversial. The bill is little known, and amidst causing anger from all round, it will would have made it possible for the eviction of homeowners who are struggling.

The congress passed the foreclosure bill devoid of any debate and the president had to step in, vetoing it. This was after members from his party asked for his intervention so that he could address the issue properly and handle the growing crisis in the line of inconsistent procedures of foreclosure.

Attorney Generals, drawn from about 40 states have vowed to also work together in the investigation of reports totaling thousands depicting fraudulent documents as well as practices overly illegal. This includes properties seized by banks lacking any kind of mortgage ownership or a clear one.

At least ten states are for extending voluntary freeze on proceedings of foreclosure from some of the United State’s biggest lenders so that they could encompass more institutions of finance and regions as well. In addition, there are voices of concerns that are calling for there to be financial moratorium nationally on aspects of foreclosure proceedings. In case this is enacted, it would easily halt any sale of properties currently in their thousands and would affect strongly on the profits made by big banks.

Most of the financial institutions involved in the emotive issue are receiving beatings left right and center from the venom of election candidates, individuals keenly weighing on the issue amidst an election season politically charged.

The vetoed foreclosure bill would have enabled the use of electronic statements to come into use across borders of states in cases of foreclosure. However, more news was received on bungled trail of papers in foreclosure cases and the bill was seen as a major concern. This is because any reliance on electronic statements would easily have allowed a lot of fraud to take place within the system.

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