The sheer volume has made the foreclosure system turn into a mess. The document processor is expected to present the papers and vouch for its authenticity as well as accuracy. But the attorneys representing the borrowers have located many instances of forgery and fake.
As per theory the judge is supposed to review the papers once more. But since the outbreak of the crisis the huge numbers simply overwhelmed the judges and put immense pressure on the entire judicial system. Many judges accepted the documents at its face value.
In some courts of Florida many judges gave the nod to foreclosures automatically if the borrower failed to point out any specific trouble spot. The house owners each had five minutes for the presentation; overcome by despair they often failed to be present.
Supreme Court Judge Arthur M. Schack in Brooklyn said that legal obligations have been taken too lightly by those involved in these cases. They have forgotten that there is something bigger to focus on – the loss of homes by the people and its impact on the society and communities. Schack has become disliked by some of the powerful lenders for turning down foreclosure cases – nearly half of those that came to him during a time period of three years. He added that the violations of document processing by Ally should not be dismissed without giving it due weight. It has been a gross matter. He said, “There are procedures to be followed in order to get a foreclosure, and you either get it right or not. Either you’re pregnant or not. There’s no in-between”.
But a different opinion is nursed by Judge Isaac Garb of Bucks County, Pennsylvania. He has presided over innumerable foreclosure cases and now deals with mediations. He said that since the foreclosure documents contained standard language the documents processors are not expected to review each and every page. He said the signatories verify merely that the information stated in the document is “true and correct to the best of his/her knowledge, information and belief”. Garb added that the house owners often utilize minor glitches in the files only to stall the process and keep it hanging as long as is possible.
David Berenbaum of National Community Reinvestment Coalition said the firms anxious to get rid of soured loans have caused the foreclosure system to become faulty – as faulty as the excessive lending that preceded it and created the mayhem. Ultimately the result is the same – the financial entities “profiting at the expense of consumers”.
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