The Real Estate Bloggers

Ohio Attorney General Say Throw Out Foreclosures Based On Robo-Signed Paperwork

Posted: 01 Nov 2010 10:30 AM PDT

Manwriting In what could be a precedent setting move, Ohio Attorney General Richard Cordray is telling judges in the states not to accept reworked foreclosure paperwork and instead throw out the cases.

This will send shockwaves throughout the state and the industry as it restarts the clock on all foreclosures that used robo-signers. The name robo-signer is used for foreclosure attorneys that did not read the paperwork but just pencil whipped it.

In most states, banks have been allowed to replace the robo-signed foreclosure paperwork and continue the procedures. If the Ohio Attorney General’s concept takes hold many foreclosures across the country will have to be restarted from scratch putting banks behind the eight ball.

This populist move is legal but will be very expensive for the banks and the real estate markets and it will open the door for litigation on foreclosures already completed.

“It is not acceptable for a party who believes they submitted false court documents to merely replace those documents. Wells Fargo and any other banks are not simply allowed a ‘do-over,’” he wrote in the letter to Wells. The other letter was sent to Ohio judges, who were asked to notify Mr. Cordray when banks file substitute affidavits.

He demanded that the banks vacate any court order or motion that was based on an improper paperwork. In an interview Friday, Mr. Cordray said the banks would “be well-served to work out a settlement with the borrowers to modify the loans and work out payments.” via the WSJ

Thanks for reading this post. If you would like to see more articles like this, please come visit The Real Estate Bloggers. where it was originally published.

Ohio Attorney General Say Throw Out Foreclosures Based On Robo-Signed Paperwork