Photo: New York Law Journal
On October 20 a New York judge ruled that foreclosures require a signature from bank’s attorneys affirming that they have checked all paperwork. Since then weekly foreclosures have tumbled from 800 to 100, according to the New York Law Journal.The 88-per cent decline is more than foreclosure lawyers expected. It’s also much greater than the normal Christmas slowdown.
Other rulings have clogged the filings, including a Dec. 1 ruling in Suffolk county that threw out 127 foreclosures for failing to file affirmations, according to Daily Finance.
A similar phenomenon is happening nationwide, with foreclosures at a two-year low after new regulations and uncertainty following with foreclosure-gate. Remember, every week toxic assets are stuck on bank balance sheets adds to servicing costs and may delay the housing recovery.
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