Foreclosure Oversights Could Be “Epidemic” in Mortgage Banking Industry

Recent announcements from Bank of America, JPMorgan and some other mortgage lenders about a stop to foreclosures until they had investigated “oversights” in the foreclosure process suggest that these problems are more serious and widespread than we initially thought. In a deposition she gave last February, one Bank of America official admitted that she signed 7,000 to 8,000 foreclosure documents per month and typically did not read them. “I typically don’t read them because of the volume that we sign,” she said. She also admitted that she had identified herself as a representative of Bank of New York Mellon, a company that did not employ her. At the center of the issue is the fact that hundreds of thousands, perhaps millions, of foreclosure documents have been signed without the required investigations to ensure that the lender is within their right to foreclose. One attorney representing someone who may be dealing with an unlawful foreclosure said, “We have had thousands, maybe hundreds of thousands of foreclosures around the country by entities that did not have the right to foreclose.” Consumer advocates say that the foreclosure oversight problems are not limited to Bank of America, JPMorgan and a few other lenders that have halted foreclosures recently. “The general level of sloppiness is pervasive around the industry,” said Diane Thompson, Counsel at the National Consumer Law Center. If these and other lenders are found to have “rubber-stamped” foreclosure documents without reading them or vetting their contents, foreclosures on homes that are currently pending and those that have already occurred could be rendered invalid or illegal. If this occurs, the nation’s foreclosure crisis could continue for a very long time. Buying foreclosures may not look like an attractive investment now, but if you’re shopping for Louisville real estate, you’re in the right place! We have the area’s best selection of residential and commercial real estate. Browse the listings on our site, and feel free to give Louisville Properties a call at 502.744.9504 today!

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James Powell

Jim Powell has over 20 years of experience buying and selling luxury real estate in Louisville, KY and Managing over hundreds or rental properties across the city.
Jim Powell (License #191501)

Lauren Ghanavatian

Lauren Ghanavatian attended Assumption High School and the University of Louisville. Growing up in Louisville gave her a sense of the unique and diverse communities this city has to offer.

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Louisville Properties is a full service Louisville Real Estate Company for buyers and sellers of real estate. We offer the following services
3418 Frankfort Ave #100 Louisville, KY 40207 Louisville, KY 40207
United States
Phone: 1-502-744-9504

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