Foreclosure System in Chaos

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In Florida, Representative Alan Grayson has asked the Florida Supreme Court to halt all foreclosures in the state in light of an investigation by its attorney general into allegations of pervasive foreclosure fraud by so-called "foreclosure mills" Is there any wonder -with reports of ongoing wrongful foreclosures and misapplied mortgage payments?  See: Repossession hell: 6 extremely 'wrongful' foreclosures

The Washington Post reports: The nation's overburdened foreclosure system is riddled with faked documents, forged signatures and lenders who take shortcuts reviewing borrower's files, according to court documents and interviews with attorneys, housing advocates and company officials.

The problems, which are so widespread that some judges approving the foreclosures ignore them, are coming to light after Ally Financial, the country's fourth-biggest mortgage lender, halted home evictions in 23 states this week.
Sign of the times - Foreclosure

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A single employee of Ally Financial may have approved tens of thousands of foreclosures across the country without reviewing the documents he was signing.

In a deposition, the employee stated that when he put his signature on case files, he did not know what information the file contained other than the borrower's name, that he did not inspect the exhibits he was supposed to, and that the notary who supposedly witnessed his signings was not in the room. Read much more on this topic here

Washington Post
Senator Franken to Justice, Treasury: Investigate foreclosure irregularities

Sen. Al Franken (D-Minn.) called on the departments of Justice and Treasury and other relevant U.S. agencies to investigate foreclosure actions by Ally Financial and to ensure that homeowners who were wronged receive "proper restitution and compensation."

Franken said the company's filing of false affidavits in support of foreclosures "may have resulted in numerous illegitimate foreclosures across the country." He said the probes should include looking into possible criminal misconduct by Ally and its employees.

In a letter sent Wednesday to Attorney General Eric Holder, Treasury Secretary Timothy Geithner and Federal Reserve Chairman Ben Bernanke, among others, Franken also asked administration officials to explain what actions the federal government is taking in its oversight role.

What lies within your foreclosure documents? The Washington Post wants to know...

Do you have foreclosure documents signed by Jeffrey Stephan or Beth Ann Cottrell?

At least two officials who signed documents indicating that they had reviewed the accuracy of thousands of foreclosure proceedings have testified in sworn depositions that they didn't actually perform at least some of the reviews.

If you have documents signed by either of the officials - Ally Financial's Jeffrey Stephan or Chase Home Finance's Beth Ann Cottrell -- or were involved in a foreclosure whose documentation they reviewed, the Washington Post would like to know about it as they continue to report on the foreclosure legal issues.

For more info on how to submit your documentation at the Washington Post click here.

Take the Washington Post User Poll

What should happen to foreclosure documents approved by "robo-signers?"

Recent revelations of faked documents and forged signatures have called the nation's foreclosure system in to question and provided borrowers with the opportunity to contest more than 2 million foreclosures. VOTE here

For more consumer stories, info on mortgage servicing fraud and issues concerning wrongful foreclosures find a few earlier blogs here

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