Many homeowners suffering through the foreclosure process are hoping that a new program will provide financial relief as they try to avoid losing their homes. But critics of the new government program believe errors in the procedures of the program will hold it back from providing meaningful relief in the wake of repeated procedural errors committed by banks during the foreclosure process.

Cincinnati foreclosure attorneys note that several major financial institutions in the United States, including Bank of America Corp and JPMorgan Chase, knowingly committed procedural errors when handling home foreclosures and put consumers at a disadvantage when the homeowners were working to keep their homes.

The major banking institutions temporary suspended foreclosures during a review period and then were forced to make amends for their unfair practices. The new relief program is one such approach to compensation.

The program is designed to offer a situational review to four million homeowners involved in foreclosure proceedings when the financial institutions were utilizing their unfair practices. These reviews would then be used to determine the amount of reparations awarded to each homeowner. But critics say the benefits of the program are overblown because of potential conflicts of interest among the consultants are hired by the banks to conduct the reviews, rather than being overseen by a third party.

Additionally, the consultants have a long history of working for the banks. Failing to comply to the banks' requests when conducting the reviews could cost them future business.

So while the program may prove beneficial for some homeowners, others may find themselves on the short end of the stick -- twice the victims of big banking.
Source: NYT "Foreclosure Relief? Don't Hold Your Breath" Dec. 24, 2011