GAO to Study Bank Walkaways at U.S. Sen. Sherrod Brown's Request
October 20, 2009
Source: Cleveland Plain Dealer
By Sandra Livingston
Federal investigators will scrutinize the practice of lenders or mortgage companies walking away from homes they've foreclosed on.
The U.S. Government Accountability Office plans to delve into these so-called bank walkaways -- something some consider an alarming trend in the foreclosure crisis.
"This investigation is an important step in addressing bank walkaways and their effects on homeowners and communities," said U.S. Sen. Sherrod Brown, who asked the GAO to investigate the practice. "By understanding the scope of the problem, we can identify the best solution. We have an obligation to rebuild communities devastated by the foreclosure crisis and ensure they are not undermined by bank walkaways."
Brown's request followed a Plain Dealer report in July on walkaways and their troubling impact.
