Foreclosures Halted To Investigate Lenders

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Texas Attorney General Greg Abbott ‘s office is calling for a halt to foreclosures as it investigates some reported shady practices on the part of lenders. Twenty-seven companies that hold notes on homes in Texas are getting letters demanding that they identify any employees who might have been involved in so-called robosigning. That’s the practice of signing thousands of foreclosure documents without reading them or reviewing their contents. Attorney General Abbott’s office wants all foreclosure practices stopped while his office investigates, including selling foreclosed properties and evicting people living in those properties. JP Morgan Chase and Bank of America have already announced they’ve suspended foreclosures as they look into irregularities. The Texas AG wants answers from the twenty-seven lenders by October 15th.

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