Monday, October 25, 2010

Thousands of N.Y. Foreclosures Riddled With Flaws; Is Wells Fargo Next?

The morgage mess and foreclosures continues to gather steam. Thousands of foreclosures across the city are being questioned because of shoddy paperwork. The documents used to justify the seizure of homes is "riddled with flaws", according to the Daily News.

"Banks have suspended some 4,450 foreclosures in all five boroughs because of paperwork problems like missing and inaccurate documents, dubious signatures and banks trying to foreclose on mortgages they don't even own".

While all the attention has been on Bank of America and its purchase of Countrywide, not much is heard, yet, about Wells Fargo and its $15B purchase of Wachovia. Can Wachovia have been very different from Countrywide?

Below are straddles for Well Fargo:

"Last week, New York's top judge, Jonathan Lippman, began requiring all bank lawyers to sign a form vouching for the accuracy of their foreclosure paperwork. That could have been a problem for one Long Island foreclosure that was being brought by GMAC Mortgage last year.

GMAC suspended foreclosures in the 23 states where court approval is required. The moratorium, which ended last week, came after GMAC "robo-signer" Jeffrey Stephan admitted in a Maine case "he'd signed 10,000 foreclosure documents a month without reviewing them".

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