The ever growing number of foreclosure cases has overburdened the judicial system thoughout the US making the process vulnerable to fraud and forgeries . The Washington Post reported this week that foreclosure cases in the 23 states that utilize judicial foreclosure proceedings were riddled with fraud, fake documents, forged signatures and inadequate review by lenders. The Post reported that Ally Financial and their mortgage unit, GMAC, halted home evictions in 23 states due to an employee executing faulty affidavits in thousands of foreclosure cases.
The Post’s report states that some of the problems are caused by the fact that mortgages have been repackaged and sold so many times that the original physical documents can no longer be located. However, the article also zeroes in on the shoddy processing of lenders , and names GMAC, JP Morgan Chase and Bank of America as a few of the biggest offenders.
As part of their reporting on the foreclosure crisis is reaching out to you, the general public, to hear your story. The newspaper is currently seeking copies of foreclosure documents signed by Ally Financial’s (GMAC) Jeffrey Stephan and Chase Home Finance’s Beth Ann Cottrell. In addition, they are interested in hearing from Mortgagors whose documents have been reviewed by either of them. They have provided a link on their web site to provide access for scanned documents or correspondence.