Thursday, September 30, 2010
I predict that the number of home foreclosures will drop this year.
Mainly because, with GMAC and now J P Morgan Chase calling a halt while they try to determine if their paperwork is legal, it won't be too long before the other major players are required to do the same.
JPMorgan Chase has suspended legal proceedings on 50,000 foreclosures, due to concerns about the validity of the foreclosure documents, a spokesman for the bank told CNBC Wednesday (hat tip to Zero Hedge).There is a purpose for all those legal "dance steps" when you buy a house.
JPMorgan spokesman Tom Kelly confirmed to the AP Wednesday that "employees signed some affidavits about loan documents without personally verifying the files."
The decision is the latest signal of a potentially massive stall in the nation's foreclosure process. Last week, after GMAC Mortgage halted its foreclosures in 23 states, the Washington Post reported that one of GMAC's employees hadn't read the roughly 10,000 foreclosure documents he approved each month (and now Colorado wants to be added to that list of states). It then turned out that the "robo signer" might not have been alone.
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