Bank Foreclosure Filings Not Always What They Seem
Banks are being forced to re-assess their procedures lately, with judges refusing to routinely grant foreclosure hearings across the US. Banks that think they own mortgates are finding out that these cases aren’t quite as clear cut as they would like.
In recent times, judges have begun to examine the papers produced for foreclosure hearings and are finding that often all is not quite what it seems. Judges are finding that attorneys are coming before them with paperwork that is shoddy. They are often not fully acquainted with the facts of the case and, more worryingly, there is frequently a conflict of interest involved.
A Florida Judge has recently charged JPMorgan Chase with presenting fraudulent paperwork for a property that it didn’t own.
A number of banks are reeling following numerous cases being thrown out of court for the reasons above and are re-evaluating their positions. Clearly, they had become complacent and foreclosures had become routine to the point where standards had slipped. The banks are now falling over themselves to distance themselves from this mess and are trying to shift the blame onto third party service companies. Ally Bank said this week that its procedures had been amended to make sure that the documents are truthful and in order. A notary must also now be present to confirm signatures on documents.
Other banks are likely to follow suit but one might ask why did it take so many cases to be thrown out of court for the banks to wake up to their sloppy procedures.
