SF Audit Finds Massive Flaws in Foreclosures

SF study of 400 foreclosures could point to huge violations nationwide
By Mary Papenfuss,  Newser User
Posted Feb 16, 2012 4:00 AM CST
A foreclosed home stands boarded up in Islip, New York.   (Getty Images)

(Newser) – Pervasive problems have been uncovered in home foreclosures in a detailed audit in San Francisco that could indicate similar wide-scale national issues. Almost every one of the recent 400 foreclosures studied involved either violations or suspicious documentation, according to officials. Some 84% of the foreclosures involved what appeared to be clear violations of law, and two-thirds had at least four violations or irregularities.

“If there were any lingering doubts about whether the problems with loan documents in foreclosures were isolated, this study puts the question to rest," a Suffolk University Law School professor tells the New York Times.The report comes on the heels of a $26 billion settlement deal involving five major banks and 49 state attorneys over foreclosure irregularities. (Read more San Francisco stories.)

My Take on This Story
Show results without voting  |