What began as scattered accusations of shoddy paperwork and fudged documents is mushrooming into a full-blown crisis threatening to derail the foreclosure process across the country.
Bank of America on Friday became the first big bank to temporarily halt foreclosures in all 50 states while it reviews hundreds of thousands of cases for potential paperwork errors.
For Florida, which has been slower than many states in attacking its foreclosure backlog, any delay threatens to not only clog courts further but also makes it harder for the overall market to reach any sort of price stability. Wary buyers will remain on the sidelines until they know the value of what they intend to purchase won’t collapse.
via Robo-signing controversy could derail nation’s entire foreclosure process – St. Petersburg Times.