Shelby, North Carolina is an unlikely place for the last stand of the foreclosure resistance movement, but that just might be where it happens.
Hundreds of lawyers have descended on the small town to learn the most effective ways of taking on big banks on behalf of small homeowners. And they’re winning more and more cases.
Who’s behind the movement? A new American folk hero, judging by how his supporters tell the story.
Homeowners are hurting, despite the fact that foreclosures dropped a bit in October (though they numbered more than 300,000) and major lenders like Bank of America (Stock Quote: BAC) and JP Morgan (Stock Quote: JPM) temporarily halted their foreclosures in response to the robo-signing scandal.
“October marks the 20th consecutive month where over 300,000 U.S. homeowners received a foreclosure notice,” said James J. Saccacio, chief executive officer at RealtyTrac. “The numbers probably would have been higher except for the fallout from the recent 'robo-signing' controversy, which is the most likely reason for the 9% monthly drop in REOs we saw from September to October, and which may result in further decreases in November."
But after big banks fix their documentation problems, expect foreclosures to ramp up again by the end of the year.
When they do, O. Max Gardner will be waiting for them. Gardner has his gun sights set on big mortgage lenders, and he’s so serious about the foreclosure mess that he has trained over 500 lawyers on his blueprint for taking on big banks time and time again.