• 21
  • October
    2010

Two of the country's biggest lenders, Bank of America and GMAC Mortgage, announced this week that they have resumed processing foreclosures. Bank of America says that they are currently working on resubmitting affidavits in the 23 states that require a judge to approve each foreclosure before the process can be completed and the property resold. Florida is one of these 23 states.

The lenders say they are restarting the foreclosures because when they revisited their paperwork they did not find any homes that were foreclosed upon in error. The lenders are accused of cutting corners in violation of proper procedure in their effort to process as many foreclosures as possible as quickly as possible.

Attorney generals of several states have said that they are not willing to simply take the banks' word that their processes were without serious error or fraud and have opened their own investigations into the banks' foreclosure documents and processes.

The attorney general of Ohio filed a lawsuit against GMAC last week. He says that he is suspicious of the banks simply substituting new paperwork with new signatures into resumed foreclosure proceedings. He says that those changes don't necessarily make things right. He says that if fraud occurred before, simply replacing the paperwork will not make that original misdeed go away.

Source:

Banks Restart Foreclosures (The Wall Street Journal)