Second Big Lender Stops Foreclosures
A second major mortgage lender, JPMorgan Chase, has stopped foreclosures so it can review loan documents for errors.
“It will probably slow things down for a couple of months while these documents are reviewed,” said Rick Sharga, senior vice president at foreclosure listing service RealtyTrac Inc. “It won’t stop things.”
But if Sharga is wrong and more problems surface, they are likely to slow the foreclosure crisis still more, making it drag on for several more years, other analysts say.
In any case, an increased number of lawsuits are likely. Christopher Immel, a Florida lawyer who represents foreclosed home owners, says many former home owners could sue their lenders, alleging errors in documents.
GMAC Mortgage was the first big lender to pause foreclosures while it reviews past files.
Source: The Associated Press, Janna Herron and Alan Zibel (09/29/2010)