• 02
  • October
    2010

Evictions are starting to slow down as attorney generals of several states and government agencies look into or open investigations into the foreclosure practices of some lenders, including GMAC and JPMorgan Chase. According to an article in The New York Times, GMAC and Chase may have violated laws by trying to process as many foreclosure cases as possible as quickly and cheaply as possible.

The violations occurred as lenders filed affidavits that summarize certain facts in the foreclosure cases. Lenders are required by law to personally know the facts disclosed in the affidavit. If the lenders do not have personal knowledge of the case, the case is supposed to go to trial to give the homeowner a chance to defend against it, as well as to make the lender prove the facts.

GMAC and Chase say that teams in their companies signed 10,000 or more affidavits per month, which made it impossible to personally review all of them. Attorneys with knowledge of the issue say that the latest evidence of carelessness, if not fraud, on the part of lenders is something they've been seeing for years.

In Florida, GMAC has withdrawn some affidavits. Attorneys say they will try to get some of the cases thrown out as possible fraud, but more likely will have grounds to challenge the affidavit in court when the lender resubmits the case.

Source:

Foreclosures Slow as Document Flaws Emerge (The New York Times)