The New York Times reported today on dubious fees that borrowers who are being foreclosed on face. Apparently, mortgage servicers are charging fees that they may not be entitled to. These fees are being added in bankruptcy proceedings. In one case, a $1,000,000 claim actually should have been a $60,000 mortgage. OOPS!
From another source: Amid growing concern about mortgage foreclosures, bankruptcy specialists are sounding the alarm on companies that oversee the foreclosure process. According to experts, some loan collectors do not follow even basic legal requirements in calculating the amount the borrower owes. Fear that abuse may be spreading in the loan service industry has prompted a division of the Justice Department to investigate companies that charge unreasonable fees.