Recently, the U.S. government reached a major settlement with five major banks over the tactics banks used to foreclose on homes. The settlement would reduce the amount of liability the lenders would have in exchange for provided borrowers with direct aid to their mortgages and reworking various mortgages.

Now, one major U.S. city has found that banks have made clear widespread violations of the law when foreclosing on homes. The findings of the report suggest that the foreclosure violations problem is likely one that persists in communities across the country.

The city of San Francisco commissioned the study, which says that 84 percent of the files examined showed clear violations of the law, and many had multiple violations. These violations could have caused countless unnecessary or unwarranted foreclosures.

Although the settlement with the U.S. government would limit the liability of banks for their past foreclosure practices, banks could still face liability for many of these violations. Filing false paperwork with government offices is often illegal, and may not be part of the settlement recently reached.

The idea that some banks have violated laws with what they included in foreclosure documents means that many people could be evicted from their homes even thought they were denied safeguards meant to prevent them from being foreclosed on.

Those facing foreclosure around the country may be wise to consult with an attorney experienced in foreclosure. They can help assure that the banks are following the law and help find alternatives to prevent foreclosure or delay foreclosure proceedings.

Source: New York Times, "Audit Uncovers Extensive Flaws in Foreclosures," Gretchen Morgenson, Feb. 15, 2012