Foreclosure Mills: The continuing saga of Robosigner
So here’s what happened, turns out that the robosigners at GMAC aren’t the only ones churning out foreclosures by the thousands. What people are now calling Foreclosure Mills. JPMorgan is the newest to be questioned about their document review procedures. Consequently, they have put 50,000 foreclosures on hold. Cue the lawyers. Some states have asked GMAC to stop all foreclosures until they can prove they are in compliance with state law. This isn’t going to necessarily stop these foreclosures from happening, it will just delay them. However, home owners who have already been foreclosed on could sue their lenders alleging errors in their own documents.
What a mess.
To complicate it more, according to NPR’s coverage, “The way mortgages are packaged and sold to many investors as securities can make it hard to determine who has the right to foreclose on a homeowner.” Remember the Mansion Squatters? This is the loophole they hope to use to win themselves a free million dollar house. Can of worms, indeed.
Here is the full story.