Time to Resume Where They Left Off!
David Wells brings us an article that highlights the inevitable. Several of my previous articles have commented on robo signing. “Robo SIgning” is, “… a process in which company employees or contractors, inundated with foreclosures, sign off on documents so fast that they don’t know what they are signing”. In many states judges halted foreclosures until the banks unwound their mess. In New Jersey, the time has come!
According to Mr. Wells. “A California bank can follow through with foreclosures on New Jersey homeowners who have defaulted on their mortgages, a state judge ruled Wednesday.
OneWest Bank, formerly failed IndyMac Federal Bank, was the fifth big bank given the go-ahead this week by General Equity Judge Mary C. Jacobson. On Monday, Jacobson ruled she was confidant Bank of America, Citibank, JPMorgan Chase and Wells Fargo will no longer engage in so-called robo-signing and can resume foreclosures. The companies were found in compliance seven months after state Supreme Court Chief Justice Stuart Rabner essentially placed a moratorium on foreclosures until it was clear that lenders weren’t robo-signing documents.”
Mr. Wells effectively outlines the fallout from the judge’s decision, “The possible restart of foreclosures has loomed over the slumping real estate market. Thousands of foreclosed homes could come on the market at a time when home prices continue to fall.
“As both the economy and the market are leaking, this is poor timing because it will put additional strain on the economy, the banking system and on the housing market,” said Jeffrey Otteau, president of the Otteau Valuation Group in East Brunswick. A sharp increase in the rate of foreclosure actions is now expected, he said. “And to the housing market, that means additional distressed inventory being added to the mix of home sales,’’ he said.
It also will cause additional declines in home prices, he added.”
In the end everyone knew that this time would come. Hopefully the homeowners that were affected used the breathing room to their advantage.
Bank Allowed to Resume Forclosures on NJ Homeowners
Written by
David P. Willis | Staff Writer
A California bank can follow through with foreclosures on New Jersey homeowners who have defaulted on their mortgages, a state judge ruled Wednesday.
OneWest Bank, formerly failed IndyMac Federal Bank, was the fifth big bank given the go-ahead this week by General Equity Judge Mary C. Jacobson.
On Monday, Jacobson ruled she was confidant Bank of America, Citibank, JPMorgan Chase and Wells Fargo will no longer engage in so-called robo-signing and can resume foreclosures.
The companies were found in compliance seven months after state Supreme Court Chief Justice Stuart Rabner essentially placed a moratorium on foreclosures until it was clear that lenders weren’t robo-signing documents — a process in which company employees or contractors, inundated with foreclosures, sign off on documents so fast that they don’t know what they are signing.
Judges overseeing the foreclosure process said the practice meant there was no way for them to know if an affidavit or certification was, in fact, true.
Jacobson appointed Richard Williams as “special master” to oversee the banks’ plans. Williams has yet to submit the plans for the last lender, Ally Bank, formerly GMAC Mortgage, said Winnie Comfort, a spokeswoman for the state judiciary.
The six big banks had experienced some robo-signing problems in the past. They also account for a large majority of the foreclosure actions in New Jersey, Williams said in his report. OneWest has pending foreclosures against 3,800 mortgage loans in the state.
Through a spokesman, OneWest Bank declined to comment Wednesday on the court’s action.
Rabner’s order gave homeowners some breathing room; The number of foreclosures filed in New Jersey fell from 58,000 in 2010 to 6,000 through July 2011.
The possible restart of foreclosures has loomed over the slumping real estate market. Thousands of foreclosed homes could come on the market at a time when home prices continue to fall.
“As both the economy and the market are leaking, this is poor timing because it will put additional strain on the economy, the banking system and on the housing market,” said Jeffrey Otteau, president of the Otteau Valuation Group in East Brunswick.
A sharp increase in the rate of foreclosure actions is now expected, he said.“And to the housing market, that means additional distressed inventory being added to the mix of home sales,’’ he said.It also will cause additional declines in home prices, he added.
Otteau said he expects the areas of Ocean County and south, Warren and Sussex counties, and the state’s larger cities to bear the brunt of the foreclosure actions.
Before Jacobson’s ruling Wednesday, OneWest, which is based in Pasadena, Calif., had to detail how it handles foreclosures throughout the company and describe its procedures. In his report, Williams said OneWest showed that its internal processes will make sure that paperwork is processed by a bank representative with knowledge gained by a personal review of the records.
The judge’s order calls for Williams to monitor OneWest as it resumes processing mortgage foreclosure cases.