Chase freezes 56,000 foreclosures due to incorrect documents
We’ve reported a few instances where Chase has filed foreclosures without the proper documentations that it actually owns the loans or has proper authority as servicer of the loan to foreclose. In one case that we’ve found, Chase couldn’t prove it owned the loan and the balance was dismissed by a judge.
It looks Chase’s documentation problems are a lot more widespread that the few cases we’ve seen, as they’ve just announced they are freezing 56,000 foreclosures because Chase employees signed off on documents without having properly reviewed them. Mind you, this is only the foreclosures, there are hundreds of thousands of additional loans that are delinquent that Chase may not be able to prove they own or have the right to foreclose as the loan servicer.
If you have a mortgage with Chase and are having problems, you may benefit by asking Chase to prove it has the proper documentation. In some cases they will not be able to prove this and you may have the leverage necessary to negotiate much better terms on your loan.
Update 10/1/10: Ohio is now asking Federal prosecutors to investigate possible defects in legal papers for thousands of foreclosures in Ohio.
Foreclosure | admin September 30, 2010
