49 states to review foreclosure cases

Oct. 13, 2010 at 4:52 PM   |   0 comments

WASHINGTON, Oct. 13 (UPI) -- Attorneys general from every state but Alabama said Wednesday they would investigate foreclosures in the wake of paperwork scandals surfacing in courtrooms.

The investigation comes on the heels of an increasing number of foreclosures marred by paperwork allegedly notarized improperly by electronic signatures or by people rushing through the documents -- not reading them in some cases, media reports say.

CNNMoney.com reported Wednesday that an increasing number of lenders had suspended their foreclosure activities to perform their own reviews of their procedures.

Six major lenders, including Wells Fargo, Litton Loan Servicing, JPMorgan & Chase and GMAC Mortgage, have put a halt to at least some of their court cases to review their paperwork. A report by Morgan Stanley said 1.3 million homes were close to foreclosure in states where a judge's signature was not required to close. Another 1.8 million foreclosures were pending in states that require a judge's signature.

Ally Financial said it had gone outside its own system to hire attorneys and accountants to review its paperwork nationally.

Iowa Attorney General Tom Miller said, "This group has the backing of nearly every state in the nation to get to the bottom of this foreclosure mess, and we plan to work together as thoroughly and expeditiously as possible."

JPMorgan Chase Chief Executive Officer Jamie Dimon said, "We don't think there are cases where people were evicted out of homes when they shouldn't have been."

The lender, however, is reviewing 115,000 foreclosure cases, CNNMoney.com reported.

© 2010 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Trending News
Join the conversation
x
Feedback