Mortgage Lenders Freeze Foreclosures
By: Dylan Brooks
Updated: October 4, 2010
Homeowners across the country are trying to sort out what's next, now that at least three major mortgage lenders have frozen foreclosures.
Ally Financial, Bank of America, and JP Morgan Chase are sifting through piles of paperwork to see if foreclosure documents were improperly handled, and whether some families were wrongly forced from their homes. Bank workers may have rushed through the paperwork for thousands of homeowners without even reading the documents.
Real Estate expert Ilyce Glink says that "the banks are saying as little as 30 to 60 days. You're dealing with 50,000 loans, maybe 30,000 to 60,000 in another. That's plenty of paperwork to go through."
Connecticut has stopped all foreclosures for 60 days and California is expanding its ban.
