Sunday, October 3, 2010

JPMorgan stalls foreclosures

NEW YORK - JPMorgan Chase has temporarily stopped foreclosing on more than 50,000 homes so it can review files that might contain errors.

JPMorgan's move Wednesday makes it the second major company to take such action this month, underscoring a growing legal problem. The issue could stall an already overloaded foreclosure process.

Still, analysts don't expect the delays to reduce the number of foreclosures over the long run.

"It will probably slow things down for a couple months while these documents are reviewed," said Rick Sharga of foreclosure-listing service RealtyTrac Inc.

But if the problems turn up at more of the largest mortgage companies, a foreclosure crisis that's already likely to drag on for several more years could persist even longer.

GMAC Mortgage LLC last week halted certain evictions and sales of foreclosed homes in 23 states to review those cases. The company said it found procedural errors in some foreclosure affidavits.

After GMAC's announcement, attorneys general in California and Connecticut told the company to stop foreclosures in their states until it proves it's complying with state law.

Associated Press September 30, 2010

JPMorgan stalls foreclosures

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