In a recent column, we explored the issue of alleged "robo-signing" of documents by individuals chosen by lenders to handle foreclosure proceedings.
Major lenders, including Bank of America and JPMorgan Chase, have suspended foreclosures because of inaccuracies in processing (BofA announced on Oct. 18 it would renew foreclosure operations). In some situations, foreclosure trustees reportedly have been allowing assistants to sign affidavits (sworn documents of fact) and other papers.
The robo-signing issue is the latest component in a larger foreclosure problem. The moratorium will keep more foreclosures from coming on the market, and thus delay the clearing of the "repo" inventory en route to real housing recovery.