Foreclosures Halted Due to Serious Bank Errors

Foreclosures Halted Due to Serious Bank Errors

On October 8, 2010, Bank of America, announced it would halt foreclosure sales in all fifty (50) states until further notice. According to ABC News, in recent days major lenders–including JPMorgan Chase, Ally Financial’s GMAC Mortgage unit and Bank of America–have conceded that paperwork supporting an unknown number of foreclosures contain errors ranging from wrong dates to forged or inconsistent signatures. In many cases, mortgage company employees signed foreclosure documents without first verifying the information in them.

Foreclosure Problems Causing Growing Concern

Whether the foreclosure problem is a result of the massive number of foreclosures, negligence or deceit, it has caused a growing concern among the public, the Congress and the banking industry. In August alone, according to real estate data firm RealtyTrac, lenders foreclosed on 95,364 U.S. properties–the highest monthly total since May 2005, when the company first began its tracking. In 19 states the number of homes seized by lenders at least doubled: in seven states it more than tripled. The number of loans 60 days or more past due now stands at 5.2 million.

Consult an Attorney if You Are Facing Foreclosure

How many of these foreclosures that involved improper documents or processes is yet to be determined. But, this is a prime reason that anyone facing foreclosure should consult an attorney to be sure that the process is legal and proper. There are times that the bank or mortgage company can not prove its interest in the property, because it can not produce the Deed of Trust or other proper documentation. Banks that can’t produce valid paperwork will find themselves in a tough spot, unable to foreclose.

That is where an attorney comes into the picture. If the bank can not produce the proper documentation then it may be possible to negotiate an alternative to foreclosure. Every person is entitled to due process of law, even if you are behind on your mortgage payments.

If you are facing foreclosure contact an attorney immediately for legal counsel and a review of the foreclosure process. If your home has been foreclosed, and you have reason to believe that the process was not proper then contact a lawyer to determine if you may have a cause of action.

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Contact the attorneys of Purple Law Firm for all of your legal questions and issues