Second Big Lender Stops Foreclosures
A second major mortgage lender, JPMorgan Chase, has stopped foreclosures so it can review loan documents for errors.
“It will probably slow things down for a couple of months while these documents are reviewed,” said Rick Sharga, senior vice president at foreclosure listing service RealtyTrac Inc. “It won’t stop things.”
But if Sharga is wrong and more problems surface, they are likely to slow the foreclosure crisis still more, making it drag on for several more years, other analysts say.
In any case, an increased number of lawsuits are likely. Christopher Immel, a Florida lawyer who represents foreclosed home owners, says many former home owners could sue their lenders, alleging errors in documents.
GMAC Mortgage was the first big lender to pause foreclosures while it reviews past files.
Source: Associated Press, Janna Herron and Alan Zibel (09/29/2010)
You may ask yourself why are these lenders stopping foreclosure proceedings in over 23 states? That is because through litigation, it has been revealed that the loan officers that were delegated the task of reviewing each foreclosure package may have “rubber stamped” or “electronically approved” more than 10,000 loan foreclosures per month. This may equate to the loan officer only spending a mere 1.5 minutes on each loan foreclosure thereby negating the requirement that they actually review and approve all of the elements of the foreclosure. Should you feel that your loan foreclosure may benefit from further review, please contact your legal counsel.