For the last week, you have probably gotten your fill of the "robo signature" fiasco where in states with a judicial foreclosure, a program was signing documents for the foreclosing lender. The question remains if a proper review was completed as a part of the review which led a number of lenders stalling foreclosures in 23 states with judicial foreclosures.
North Carolina allows for both types of foreclosure but the vast majority are non-judicial foreclosures. South Carolina is a judicial foreclosure state.
To the rescue of North Carolina delinquent homeowners is State Attorney General Roy Cooper who has started investigating the top 15 mortgage servicers in the nation to see if they are complying with North Carolina laws. In North Carolina, the lender must make a reasonable effort to provide the homeowner a workout option of loan modification prior to foreclosure. In addition, he has also asked that these lenders suspend foreclosure activities until they can provide the state evidence they are complying with the law.
The servicers under investigation are:
In a related matter, title insurance provider Old Republic has released a statement to DSNews saying that they are no longer offering title policies on bank owned property owned by GMAC or J.P. Morgan Chase.
Therefore, before you start looking at a bank owned property, it would be wise to figure out who owns that property as it could be a source of heartache later on. Additionally, bank owned for sale inventories are beginning to drop as some banks are removing homes from the market and others are selling with nothing to replenish. If you have your heart set on a bank-owned property, you'd better start looking now