The Latest Housing Crisis: Foreclosure Fraud
When it rains, it pours. After suffering through a housing crisis and a down economy, many Americans are now confronted with another crisis: foreclosure fraud.
Much of the new crisis revolves around the way that the foreclosure process is being handled, from banks not being able to provide proper documentation of ownership, to claims that documents have been “notarized” but not actually signed in the presence of notaries, to the act of robo-signing. This dubious practice has prompted an investigation by the National Association of Attorneys General that noted in a press release that robo-signing is “the process of signing documents without confirming their accuracy.”
This latest crisis even led to several of the biggest lenders to halt their foreclosure processes for short periods of time so that issues could be sorted out. According to The New York Times, banks reviewed documents for errors, made corrections and then resubmitted the documents so that the foreclosure process could be continued.
As a result of the latest crisis, the attorneys general from all 50 states have begun investigating the foreclosure process. Of this effort, White House Press Secretary Robert Gibbs noted that the White House was “strongly supporting the investigation by the state attorneys general.” The Federal Housing Administration (FHA) and the Financial Fraud Enforcement Task Force have also begun investigations into the foreclosure-fraud mess.
The New York Times feels that in areas where the sale of foreclosed homes has been on the rise, a national moratorium on foreclosures or any prolonged halting of the foreclosure process could derail a “recovery of the housing market.”
If you are involved in or face a foreclosure and have questions about the process or the bank’s right to proceed, contact an experienced lawyer in your area. A knowledgeable attorney can help explore all of your options, including how to possibly keep your house, even if you are facing foreclosure.