Attorneys Criticized For Role In Foreclosure Crisis
01/12/2011
By Credit.com Staff
Judges in New York and Florida will require attorneys involved in the foreclosure process to give testimony that their paperwork is accurate and legitimate, the Huffington Post reports. The new procedure comes on the heels of investigations into banks and mortgage companies that falsified paperwork or notarized thousands of foreclosure documents that were riddled with errors.
The judges have stated that attorneys may have played a role in this crisis by filing inaccurate or fraudulent paperwork on behalf of clients, perpetuating the situation.
While the judges are investigating into the matter, many attorneys are expressing their dismay toward the new procedure. Additionally, the New York bar association has sided with the attorneys and voiced their opposition toward this procedure, according to the Huffington Post.
Thousands of homeowners have filed lawsuits amid the robo-signing crisis, but the nation's largest banks have suspended the moratorium on foreclosure proceedings and have begun repossessing homes. However, the banks have said they are continuing to investigate the matter and will take steps to improve their procedures to avoid mistakes in the future.
