Monday, November 1, 2010

Foreclosure actions downshift under increased scrutiny -

Foreclosure actions downshift under increased scrutiny - "Paperwork problems

Wells Fargo, which hadn't stopped foreclosure sales, says it's refiling documents in 55,000 cases after a review found paperwork problems.

Ally Financial's GMAC Mortgage unit is doing independent reviews of foreclosure procedures in all 50 states. Any case going to sale gets another review.

In 23 states, GMAC also temporarily suspended evictions and foreclosure sales while conducting its review. As it reviews each case, and makes corrections as needed, cases move toward sale, says spokeswoman Gina Proia.

Some judges are demanding more information from servicers in response to the revelations about robo-signers and defective paperwork that resulted after mortgages were transferred from lenders to investors and then to other investors during the housing bubble.

Late last month, New York Judge Arthur Schack dismissed a foreclosure action brought by OneWest Bank and gave it 60 days to provide more information if it brings the case back for reconsideration.

Among other things, Schack ordered it to provide an affidavit explaining the employment history of a OneWest vice president who said she had reviewed the documents in the case."

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