Update: One of the consequences of the mortgage meltdown is the mounting litigation over improper foreclosures. Homeowners are hiring lawyers and fighting the banks trying to repossess homes. It is no secret whose side Congress in on in this battle. Congress refused to consider middle class tax relief before elections, but a bill making it more difficult to challenge improper foreclosures sailed through the Senate without public debate on the last day before recess. A special procedure was invoked by Democratic leadership to take the languishing bill out of the Senate Judiciary Committee so it could be passed by unanimous consent with the help of Repugnants. The bill had already been passed by the House twice. The ease with which the legislation passed even surprised its Repugnant sponsor, Senator Robert Aderholt. Questions about notarizations, improper affidavits, and other court filings have risen in foreclosure actions by big banks such as JP Morgan, Bank of America and GMAC. Some bank employees have testified that the notarizations in mass filings were made without appearing before the notary who sealed the attestation. Also in some foreclosure cases, affidavits of personal knowledge were made by processors without actual knowledge of the documents' contents. Widespread halts of foreclosure proceedings and increased costs have been the result of the exposed irregularities. The bill awaits the President's signature. The Interstate Recognition of Notarizations Act requires all states and federal courts to recognize notarizations made in other states, including electronic notarizations made en masse. Currently only a dozen states recognize such computerized imprimaturs.
{5.10.10}Not a very colorful chart this week, but it conveys important information about the crippled American real estate market:
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| source: Business Insider.com |