In what could quickly become a major national news story, The Press of Atlantic City reports that six mortgage lenders in New Jersey (including some who are the biggest banks in the U.S.) have been ordered by the state’s Supreme Court to appear in court on January 19 to explain why the state shouldn’t suspend their foreclosure practices as a result of the robo-signing that has been rampant the past few months. The lenders are reported to be Ally Financial; BAC Home Loan Servicing, which is a subsidiary of Bank of America; Chase Home Finance, which is a part of JP Morgan Chase; Citi Residential Living, which is a subsidiary of Citibank; OneWest; and Wells Fargo Financial New Jersey. An additional 24 lenders were given 45 days to provide evidence there aren’t irregularities in their foreclosure actions.
New Jersey has been swamped with foreclosures, and within the last few years, the number has skyrocketed. In 2006, there were over 24,000 foreclosure cases in the state. By 2009, that number had risen to over 66,000. By the end of 2010, the courts had handled over 46,000, with thousands more in the pipeline.
Unfortunately, evidence has arisen that has shown the banks have not been honest in their foreclosure practices. The recent robo-signing crisis brought to light the fraudulent practices of the nation’s banks, who hired individuals who have been dubbed “robo-signers” to process hundreds of foreclosure affidavits every day. This does not provide assurance that the banks’ claims against borrowers are documented and accurate, which they are required to prove legally.
The robo-signing predicament is a national problem, and the fraudulent practices of mortgage companies and banks have affected Americans across the country. To learn more about your rights as a homeowner in New Jersey, contact the Law Offices of Robert Manchel. Our New Jersey foreclosure lawyers can help you understand your legal options during this difficult time. Call us today at 866-503-5655.