2nd Lender Stops Foreclosures
JP Morgan joins GMAC
We have been hearing and reading that many of the home mortgages underwritten, over the past dozen years, were fraudulent in nature. It seems like as we get deeper into this housing crisis, not only are we finding that many people are not able to retain their homes but they acquired the homes with creative documentation. This will throw the housing crisis into a ugly pool for a number of years.
This action will affect those homes currently in foreclosure as well as those homes who have be foreclosed already. We know it will affect homeowners and the lenders.
However, the ripple affect is going to reach down to title companies, credit reporting agencies, insurance companies, real estate professionals as well as investors.
It will require the courts to decide was the fraud caused by the homeowner submitting improper documentation, the lender representative doctoring up the improper documentation or was it the lender not doing their due diligence in verifying the documentation provided them.
This possess will take years and it will change the way real estate is purchased, the way mortgages are written and the way the credit reporting agencies accept documentation from the companies providing the information.
As this process shakes down, we will continue to provide information for review.