Banks have recently fallen under investigation for their foreclosure practices. In the struggling economy, companies that have not been affected are those hired by banks to change the locks and take over homes that have been foreclosed. There have been an increasing number of cases where these companies have actually shown up before the foreclosure process is even finished. .
Nancy Jacobini, an Orlando resident, locked herself in her bathroom and called 911 to report a break-in when, in all actuality, the trespasser was a repo man hired by Jacobini's bank, JPMorgan Cahase. The bank has since admitted its mistake. Jacobini's attorney, Matt Weidner, claims that these instances are examples of financial institutions "running amuck." "What we have right now is lawlessness across the country. Banks and institutions are circumventing our courts. They're going behind our judges' backs and they are throwing homeowners out on the street out completely improperly," he said (Siegel). Even if a bank is allowed to take over a home because of foreclosure, they are not legally allowed to change the locks on an occupied home under any circumstances. Banks defend that they must change the locks on homes because many homeowners abandon their homes, leaving them vulnerable to outsiders. Legal actions against the lock-changers have remained civil suits, rather than criminal, because it is difficult to prove that banks had a criminal intent. However, in some cases, the lock changers themselves have helped themselves to some of the household items. In Florida, repo men were reported for stealing a laptop, an MP3 player, and six bottles of wine (Alden). .
The attorneys general in 40 states are launching a joint investigation of allegations that banks are cutting corners and using fraudulent paperwork to foreclose on some homes. Bank of America is putting the brakes on foreclosures in all 50 states while it reviews its foreclosure procedures.
