FORT MYERS, Fla. - Three banks are temporarily freezing foreclosures in Florida and 22 other states and it's impacting all segments of the distressed real estate market.
The freeze is because of what's become known as robo-signing - one person signing hundreds of documents or more at a time without completely reading them. The law requires that person be able to swear under oath everything in the foreclosure paperwork is correct. Until the issue is resolved, GMAC, Bank Of America, and JP Morgan Chase are putting foreclosures on hold. Other lenders could follow suit.
Owners, buyers, and even real estate agents are all feeling the effects of the decision. Real Estate Contributor Denny Grimes breaks it down for us in this segment of Real Estate Matters.