Many of the nation’s largest lenders and financial institutions are continuing to sift through foreclosure documents for errors, but the halt of foreclosure proceedings may be coming to an end. JP Morgan Chase, one of the banks that discovered significant processing errors, announced it will re-start foreclosure proceedings on more than 127,000 accounts over the next few weeks.
The financial institution was initially forced to halt more than 115,000 foreclosures after determining thousands of documents were signed off by banking representatives without verifying the accuracy of the information. Other institutions, including Bank of America and Ally Financial, have reported similar cases of erroneous or fraudulent procedures that led to a proposed overhaul of the foreclosure review system.
Despite ongoing issues with the foreclosure crisis, including lawsuits and title disputes, many banks are either re-starting or considering re-starting their foreclosure proceedings. Bank of America has begun unfreezing their foreclosures and Ally Financial is working on a case-by-case basis to determine discrepancies.
“Foreclosing isn’t good for us,” JP Morgan Chase chief executive Charlie Scharf said. “We don’t want to foreclose on people. Unfortunately, there are people that just don’t want to stay in their homes or can’t afford to stay in their homes.”
Although many Americans have brought lawsuits on their lenders, financial professionals say this may not be enough to help them save their homes, especially if they were already behind on their mortgage payments. At most, lawsuits may buy struggling homeowners more time to make alternative arrangements or find the funds to pay down their home loan debt.
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