Two of the nations largest banks and mortgage lenders, Wells Fargo and Bank of America, have recently made statements that they are expecting large fines from multiple investigations in their foreclosure practices which are currently being conducted by state and federal authorities. The probes began in the fall of 2010 amidst numerous allegations of "robo-signing", approving and signing thousands of documents related to a foreclosure without actually reading them or verifying their accuracy.
Both banks temporarily halted foreclosure proceedings as they reviewed thousands of foreclosure documents and both banks corrected and re-filed many foreclosure documents as a result of those reviews. While the banks have made efforts to clean up their foreclosure documentation issues, it is not an easy fix and the problems could persist and hang over the lenders for several years. Federal regulators have indicated they could seek as much as $20 billion in fines from the lenders to settle the probe and Bank of America has stated that the probe could lead to "significant legal costs in 2011."
Hopefully these forthcoming fines as a result of the investigations will lead banks, both large and small, to permanently clean up their foreclosure practices and fix the outstanding foreclosure documentation issues. If that happens it can only come as good news for homeowners facing foreclosure. If you are facing a Florida Foreclosure Lawsuit, contact a Jacksonville Foreclosure Lawyer or a Florida Foreclosure Lawyer today to explore what foreclosure defenses may be available to you.
