Bank of America and JPMorgan Chase along with GMAC Mortgage have halted forclosures in 23 states while controversial legal practices are being resolved. Following a call for review from federal regulators because of potential defective forclosure documents, these lenders ceased forclosures where court approval is needed. Citigroup and Wells Fargo said this week that they regularly review forclosure documents to ensure they are done correctly.
Related to forclosure problems, a major title insurance company stopped insuring homes forclosed by JPMorgan Chase until “objectional issues have been resolved”. When forclosures use faulty documentation, new owners could be at risk to claims, hence, title companies need to protect their business of insuring against defects, errors or omissions in the chain of title.
Anne Mayberry 970.846.1425