Amid the problem of high number of foreclosed properties and FHA repo homes, Florida also has to deal with alleged faulty paperwork involving foreclosed and repossessed properties. According to some lawyers representing a number of the state's homeowners, employees from certain banks have admitted to not examining foreclosure documents that have been used in taking over homeowners' properties.
This revelation has put into question whether all Jacksonville repo homes for sale and foreclosed properties in other cities of the state should have been foreclosed in the first place. The questions came right after a JPMorgan Chase and Co. mortgage executive admitted that she does not usually verify paperwork submitted for foreclosures.
According to the executive, thousands of Florida repo homes and foreclosed property documents come into their office every day. She admitted that she signs documents unless someone poses a question about them or bring to her attention any questionable area of the paperwork. The executive also stated that affidavits supporting JPMorgan's claims are signed most of the time without consulting homeowners' loan records.
Real estate legal experts have stated that homeowners who have lost their properties to foreclosures and FHA repo homes can cite inaccurate foreclosure documentation by banks as basis for a legal challenge. They cited the 2006 event when a Florida court called GMAC Mortgage to task for faulty documents and affidavits, leading to the company suspending evictions in over 20 states.
According to real estate experts, this is not the first time that the validity of foreclosed and repossessed properties for sale has been questioned. In New York and Florida, several foreclosures have been stopped due to questionable affidavits. Following the admission of the JPMorgan Chase employee, attorneys general from several states, including Illinois, Iowa and Texas, initiated investigations into the mortgage procedures of GMAC Mortgage and other lenders.
Meanwhile, the California government has ordered GMAC to produce proof that the company's foreclosures are legal, otherwise, they will not be allowed to continue the process of foreclosing. Analysts are worried that the issue will bring further problems, particularly if the fault was found after the property has already been sold. They stated that, in such cases, there will be confusion as to who really owns the foreclosed dwellings or FHA repo homes.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.
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