Oct
04

Some Illinois Foreclosures on Hold Due To Lazy Lenders

October 04, 2010

Bank of America is freezing foreclosures in 23 states, including Illinois, after thousands of documents may have had paperwork problems.

The controversy has been dubbed “robo-signing” and involves lenders who are signing off on eviction and foreclosure documents without even reading them. Some of the documents may have even been forged.

The Office of Comptroller of the Currency (OCC) has ordered the nation’s largest lenders to review their foreclosure proceedings and make sure no borrowers have been hurt in the past.

Those lenders are:

Foreclosure for Sale*Ally Bank (formerly known as GMAC)

*Bank of America

*Citibank

*HSBC

*J.P. Morgan Chase

*PNC Bank

*U.S.Bank

*Wells Fargo

The Associated Press reported last week that a Bank of America official admitted to signing up to 8,000 foreclosure documents a month without reading them due to sheer volume.

Many lenders are being found guilty of this, and these lax practices could result in thousands of homeowners contesting foreclosures in the works or that have already been completed.

“We have been assessing our existing processes,” said Bank of America. “To be certain affidavits have followed the correct procedures, Bank of America will delay the process in order to amend all affidavits in foreclosure cases that have not yet gone to judgment in the 23 states where courts have jurisdiction over foreclosures.”

Categories: Economy, Mortgages

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Tracey

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3 Comments

1

[...] Chicagoland Real Estate Forum recently reported that Bank of America suspended foreclosures in 23 states due to the “robo-signing” controversy. [...]

2

[...] with the foreclosure process. Chicago Real Estate Forum covered the Robo scandal last year  in Some Illinois Foreclosures On Hold Due to Lazy Lenders.  Unfortunately the banks being more careful doesn’t mean that  families aren’t still in [...]

3

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