I realize that this will come as a shock to some longtime Forum participant, but the Wall Street Journal recently discovered that alleged mortgage investors have suffered some challenges in foreclosing:
"Mortgage Lenders Set Back in Courts"
The push by mortgage companies to accelerate the snarled foreclosure process is running into resistance from judges who are cracking down on sloppy paperwork.
In Florida, a state-court judge has begun forcing lawyers to defend fees charged to borrowers by law firms. Maryland's state appeals court told judges that they can hire experts to scrutinize paperwork filed in foreclosure proceedings—and make lawyers swear that the documents are accurate.
Since last month, New York has threatened to use "penalties of perjury" against lawyers caught filing bad documents, even if they didn't know about the problems when the foreclosure process began.
The moves by dozens of state courts across the U.S. could add to the delays brought about by foreclosure-document crisis. Sales of foreclosed homes have slowed, and mortgage servicers face new expenses as they scramble to shore up their operations.
Over the long run, borrowers are likely to pay hundreds of dollars in additional fees or slightly higher interest rates, as toughened quality control ripples through the market for new and refinanced mortgages, many experts predict.MORE (see the article)
Why not visit the WSJ site and share your Comments?
For comparison, see:
"York State Courts Catch On To Foreclosure Plaintiff Fraud/Misconduct and Embrace Ohio Standing Rationale" 05/10/08 at 06:47 PM)