Foreclosure Robots Under Investigation

Homeowners on the brink of eviction due to foreclosure proceedings can rest a little easier: Mortgage lenders are dramatically slowing the pace of foreclosures as state and national law enforcement officials take a closer look at the business practices of two top banks that processed thousands of defaults. JPMorgan Chase and GMAC Mortgage have admitted to rubber-stamping foreclosure documents without reviewing them, to streamline the process for maximum volume and profit. Attorneys general in some states are initiating investigations; the Treasury Department announced a plan to examine "these troubling developments." Some observers suggest the scandal may aid a housing recovery by forcing lenders to negotiate with distressed homeowners rather than simply evict them.
For more on mortgages see these
AOL Real Estateguides:
Read Full Story

Can't get enough real estate news?

Sign up for Finance Report by AOL and get everything from celebrity homes to renovation tricks delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

Find a home

Powered by Zillow