Foreclosures Slowed by Investigations — New York Real Estate

Foreclosures Slowed by Investigations

by John Tayeb on November 4, 2010

Foreclosure fraud

Foreclosure proceedings have slowed nationwide as both state and federal investigations force banks to retool their procedures and home owners to hire lawyers to challenge foreclosure actions.

Foreclosure marketing firm RealtyTrac blamed the controversy for the 6 percent drop in foreclosure auctions in the first 25 days of October, compared with the same time period in September. Here is a roundup of bank responses:

  • JPMorgan Chase is reviewing files in 41 states and has suspended foreclosure sales there.

  • Bank of America has stopped foreclosure proceedings while it refiles affidavits in 102,000 foreclosure actions in 23 judicial approval states, and reviews its procedures in the other 27 states.

  • Ally Financial’s GMAC Mortgage unit is reviewing paperwork on all cases nearing sale and has temporarily suspended evictions and foreclosure sales in the 23 judicial states.

  • Wells Forgo is refilling documents in 55,000 cases but hasn’t stopped foreclosures.

Source: USA Today, Stephanie Armour and Julie Schmit (11/02/2010)

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