A second major mortgage lender, JPMorgan Chase, has stopped foreclosures so it can review the loan documents for errors.These moves are likely to slow the foreclosure crisis even more, making long-drawn out process drag on for several more years, several foreclosure analysts are saying.
In any case, an increased number of lawsuits are likely. Many foreclosed home owners will be looking to sue their lenders alleging errors in documents.
GMAC Mortgage was the first big lender to pause foreclosures while it reviews past files.
There have been several suits agains mortgage lenders based on whether the MERS clearing house actually transferred the note with the mortgage. A judge in California and another judge in Kansas held that the transfer was invalid and reversed the foreclosures in favor of the homeowners.
