Officials in 50 states launch foreclosure probe

[FourScore]

Source: AP

Officials in 50 states and the District of Columbia have launched a joint investigation into allegations that mortgage companies mishandled documents and broke laws in foreclosing on hundreds of thousands of homeowners.

The states' attorneys general and bank regulators will examine whether mortgage company employees made false statements or prepared documents improperly...

...Attorneys general have taken the lead in responding to a nationwide scandal that's called into question the accuracy and legitimacy of documents that lenders relied on to evict people from the homes. Employees of four large lenders have acknowledged in depositions that they signed off on foreclosure documents without reading them.

The allegations raise the possibility that foreclosure proceedings nationwide could be subject to legal challenge. Some foreclosures could be overturned. More than 2.5 million homes have been lost to foreclosure since the recession started in December 2007, according to RealtyTrac Inc...

Read more: http://news.yahoo.com/s/ap/20101013/ap_on_bi_ge/us_foreclosures_states

[corpseratemedia]

1. Hundreds of thousands?

I bet that's a drop in the bucket.

[drm604]

2. What will be the systemic effect of all this?

:scared:

[valerief]

3. Does that mean the investors who made big bucks off the derivatives that bet on failed mortgages

will have to return their gains?

[Waiting For Everyman]

4. K&R Good on the AGs! All of them together is impressive

and will result in more uniform and coordinated action - therefore more fair, as it should be.

:applause:

My governor (MD) already shut down all foreclosures in the state for 60 days, via our court system.

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=389x9303701

[No Elephants]

5. For all her faults as a candidate for Kennedy's seat, Coakley led on this. Hope she wins in

November.