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New Rule for NY foreclosure attornies

By
Mortgage and Lending with Bob Amato of Empire Home Mortgage Inc

In today's paper there was an article that New York State courts began ordering lenders' attorneys in foreclosure cases to file sworn statements that they have made reasonable steps to check the accuracy of the documents. This is a response to the nationwide mess over "robosigning" of affidavits.

 Lenders already swear to the accuracy of papers when they file foreclosure suits, but in recent weeks sloppy documentation attesting to the ownership of mortgage notes had forced Ally Bank, GMAC, JP Morgan Chase and Bank Of America to suspend foreclosures. Chase and Bank of America are to resume foreclosure preceedings next week.

 Attorney s general in all 50 states are investigating bank foreclosure practices.

 Before attorneys for the lenders might question their clients on anything but relied on them to have truthful documentation.

 This directive covers incoming and current cases and even homes that have foreclosure judgements but have not yet been auctioned off.

 Some attorneys for big lenders predicted that this will become a bottleneck in the state's already lengthy foreclosure procedure.

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