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Department Of Justice Thinks Banks Proving Right To Foreclose Is Not Something Trivial But Serious

By Karen Anne : A how to tutorial about foreclosures, foreclosure listings, real estate, Business with step by step guide from Karen Anne.

The Department of Justice through its unit United States Trustee sees to the proper functioning of the bankruptcy courts. It thinks that the issue of banks proving the right to foreclosure is not something trivial but a serious issue. As such it has intensified its investigations of the authenticity of the claims made by the lenders saying that they are authorized to foreclose. Already in two cases in Atlanta the trustee has stepped in to interfere.

Jane Limprecht speaking on behalf of the trustee programme agreed that it was intensifying its scrutiny on the banks. She said, The United States Trustee Program is engaged in an enhanced review of mortgage server filings in bankruptcy cases to help ensure the accuracy of the claim to repayment.

The lenders in the two cases in Atlanta are Chase and Wells Fargo. A spokesperson of Chase said it was the holder of the note and thus it had a legal standing in proceeding with foreclosure. Another person speaking on behalf of Wells Fargo said that it was the trustee pertaining to a mortgage security containing the loan; it was not the servicer.

Atlanta lawyer Howard D. Rothbloom who defends borrowers in cases of bankruptcy welcomes the steps taken by the Department of Justice under the aegis of trustee Donald F. Walton. He thinks this stand will bring about a sea change in foreclosure dealings.

Rothbloom said, Until now, what we had was homeowners complaining about a lack of due process. Now you have the federal government complaining about the abuse of the judicial process. Thats really what was missing before.

Whether the judge rules in favour or not in specific cases cited is not relevant ' what is of significance is the intervention of trustees in these cases. It is insisting that the lenders prove to the courts that they have the authority to foreclose ' they have to show their proof and not just talk about it. Till now this had become a custom.

Now the actions of Walton may serve the purpose of a warning to the banks that they should be better prepared before starting off foreclosures. Rothbloom said that for many years it had been routine for the trustees to side with the creditors ' the US trustees seemed to have been set up to see that the banks do not get cheated by the borrowers. Now the realization is dawning that the banks can also cheat the borrowers.

Karen Anne, has been working on ForeclosureListings.com studying the foreclosures market, helping buyers on the finer points of foreclosures. Try to visit ForeclosureListings.com and search foreclosure listings.

Original article published on PubArticles.com

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