What does it mean that banks are suspending foreclosures? Beats me, as I have yet to hear from a single bank that they are actually suspending a case I am working on. As we know, the banks do not actually have the right to suspend a case to figure out their screwups, so the judges should force them to dismiss them, but I doubt we will see mass dismissals of foreclosure cases. Essentially, the banks are getting away with this because most defendants have no money to challenge them, and even fewer are fundamentally entitled to stay in their homes.
What is to be done? Unfortunately, when the government had the chance to force the issue, when they were busy bailing the bankers out of their self created problems, so we are now stuck with the reality that banks ask borrowers to default and then force them to wait months through incompetent negotiations for a modification. Now we are in a position where we cannot do anything to force the banks to straighten up and figure out a reasonable solution.
Oh, and who knew that the mortgage bankers association defaulted on its own mortgage, amazing and fitting.