facebook
twitter
rss
account
search
search
 

Justice to probe foreclosure practices

Oct. 6, 2010 at 6:15 PM   |   Comments

WASHINGTON, Oct. 6 (UPI) -- The U.S. Justice Department says a task force will investigate the nation's foreclosure practices after allegations of improprieties.

The investigation follows complaints from House Speaker Nancy Pelosi and 30 other California House Democrats who charge homeowners can't get help such as loan modifications because banks lose paperwork or don't respond when homeowners ask what they need to do to avoid foreclosure, The Hill newspaper reported.

"It appears that banks have repeatedly misled and obstructed homeowners from receiving the help Congress and the administration have sought to provide," the lawmakers said in a letter to the department and other agencies.

Some financial institutions have halted foreclosures over concerns about incomplete or inaccurate paperwork, The Hill said.

Some of the problem stems from "robo-signers," the newspaper said, middle managers who sign affidavits allowing banks to repossess homes that are in default. Several admit they signed off on thousands of foreclosures without fully reviewing the documents, The Hill reported.

Amid a record number of foreclosures, Delaware, Texas, Maryland, Ohio, Connecticut, Florida, North Carolina, Iowa and Illinois are among a growing number of states asking some banks to halt foreclosures because of possible problems.

© 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.
Most Popular
1
Poland buys medium-range missiles from U.S. Poland buys medium-range missiles from U.S.
2
Great white shark circling surfers photographed by drone Great white shark circling surfers photographed by drone
3
Watch: News anchor resigns live on-air to sell pot, '[Expletive] it, I quit' Watch: News anchor resigns live on-air to sell pot, '[Expletive] it, I quit'
4
Arrest warrant issued for 'person of interest' in missing UVA student case Arrest warrant issued for 'person of interest' in missing UVA student case
5
Cop-killer suspect Eric Frein possibly spotted, in standoff Cop-killer suspect Eric Frein possibly spotted, in standoff
Trending News
Video
x
Feedback