You'd like to think that everyone in charge of overseeing legal documents crosses their t's and dots their i's, especially the folks who start foreclosure proceedings on people's homes.
But some of them are saying in sworn depositions that the only t-crossing and i-dotting they're doing is in their signatures as they sign like mad.
As The New York Times notes:
In depositions taken by lawyers for homeowners, executives at GMAC and Chase said they or their teams signed 10,000 or more affidavits and related documents a month. That did not give them time to review the cases.
Defense lawyers say the disclosures are symptomatic of the carelessness, if not outright fraud, that lenders have been exhibiting for years in their rush to file cases. Many necessary documents have disappeared, with defense lawyers saying the lenders often do not even have standing to foreclose.
On Friday, Bank of America announced that it will temporarily stop foreclosing in 23 states as it reviews its own processes.
Maryland isn't on that list, and I haven't seen it mentioned in other stories about "robo-signing" lenders. Perhaps that's because the state has a "quasi-judicial" foreclosure system, while the 23 states on the BoA list -- according to the Associated Press -- "use a lengthy court process."
"Maybe this is like shock therapy," he told the Times. "Maybe this will actually get the lenders to the table and encourage them to work out deals that are to the benefit of everybody."
Edward Ericson Jr., who runs the City Paper's Crash Course blog, doubts the delays will help. He describes the situation we find ourselves in this way:
1. Loan servicers are creating bogus “affidavits” to attest to the legal sufficiency of
2. Sloppily-documented loans ginned up by mortgage brokers and fly-by-night lenders who
3. Either flim-flammed or willingly collaborated with borrowers who were either
A. delusional, or
What's your take?