Claims of Illegal Foreclosures Causes Investigation and Freeze

October 1st, 2010 - 11:51 pm ICT by Angela Kaye Mason  

Oct 1 (THAINDIAN NEWS) In an announcement which was made on Wednesday, JP Morgan stated that they are freezing around 56,000 foreclosures after discovering mistakes in the way the documents were filed.

Homeowners everywhere are making claims that the foreclosures are illegal, and their lamenting has reached the ears of top Washington officials, who are ordering an investigation of the lending companies. They want all of the improprieties which were done in the handling of these foreclosures to be in the investigation.

The Washington Post reported that “paperwork problems range from potentially forged documents to bank employees who never read borrowers’ files before signing off on an eviction.”

Top federal bank regulator John Walsh said to the lawmakers that some of the lenders “clearly had deficiencies” in the way they carried out foreclosures.

JP Morgan promises to act accordingly. “While we don’t expect our review to find that consumers were harmed, we will take appropriate action if we find any impact,” said a spokesperson for JP Morgan, Tom Kelly.

Related Stories

Tags: , , , , , , , , , , , , , , ,

Posted in Business |

Latest News

Subscribe