New York judge chastises banks for sloppy and flawed paperwork
A year ago, Judge Jeffery Spinner called the foreclosure of Diane Yano-Horoski “repugnant”. He forgave her family’s total debt of $525,000 including interest.
While the judgment is being appealed by the California bank, “Spinner and some of colleagues in the New York City area estimate they are dismissing 20 to 50 percent of foreclosure cases on the basis of sloppy or fraudulent paperwork filed by lenders.” (Washington Post)
“Their decisions illustrate the central role lower court judges will have in resolving the country’s foreclosure debacle. The mess came to light after lawsuits and media reports showed lenders were routinely filing shoddy or fraudulent papers to seize the homes of borrowers who had missed payments.”
“In millions of cases across the United States, local judges have wide latitude to impose sanctions on banks, free homeowners from their mortgage debts or allow the companies to proceed with flawed foreclosures. Ultimately, the industry is likely to face a messy scenario – different resolutions by courts in all 50 states.” Washington Post