Documents Relating to Foreclosures are Much More Widespread than Initially Thought
Photo by Kozumel
Across America, counties are finding out that illegal or dubitable documents relating to foreclosures are much more widespread than initially thought. These scarred deeds are currently numbering into the tens of thousands going back to the later years of the 90s. These questionable documents could generate legal mire for the house owners for many years.
Troubles have already started because courts have begun cancelling many mortgage documents. Insurers are shy about issuing policies and judges are stopping banks from proceeding with foreclosures.
Registers of deeds of numerous counties have stopped settlement talks with the attorneys general of all the states who have been investigating the operations of the banks and other lenders regarding mortgage practices that have racked up controversies.
This slipshod documentation involved many short cuts that have collectively been termed ‘robo-signing’. Connected with this fraudulent documentation are big names in the finance world – Bank of America, JPMorgan Chase, Wells Fargo etc. The eruption of the scandal led to the temporary halting of foreclosure proceedings across the nation last autumn.
Initially, robo-signing was linked with the affidavits filed by the banks. These were proofs that the banks had the right to foreclose if the homeowner was in default. The firms engaged in processing mortgages were so drowned with paperwork that they resorted to short cuts.
But the officials of the county combing through mortgage papers are honing in on dubious signatures – either the same name has been signed by many different people or no review of the documents have been done prior to signing. The papers date back to 1998 according to the Associated Press.
Jeff Thigpen of Guilford County, North Carolinais the registrar of deeds. He said, “Because of these bad titles, property owners can’t prove they own the properties they think they bought, and banks can’t prove they had the right to sell them”.
In Guilford County, for instance, 6,100 mortgage papers had been submitted since 2006. It was discovered that 74% of these mortgage papers had dubitable signatures. Thigpen also informed that another lot of 456 documents with suspicious signatures were located by his office – the dates were from October 1st, 2010 to June 30th, 2011.
Sheila Bair the chairperson of FDIC in a written note to Senate Banking Committee observed, “We do not yet really know the full extent of the problem”.
Find more Guilford Foreclosures
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