MORTGAGE FORECLOSURE MORATORIUM
Many mortgage lenders have now declared a foreclosure moratorium, and attorney generals in all 50 states are investigating foreclosure practices. The investigations center on 2 issues:
- Lack of documentation and outright fraud in the original mortgage documentation.
- Improper procedures in the mortgage foreclosure process.
The first problem is much more serious than the second. It may take months or years of legal action to find out how many truly fraudulent or improper mortgage loans were made in the 2000’s, and how the properties may now be sold. Improper mortgage foreclosure procedures can be corrected by re-filing so long as the property has not been sold. After sale, an improper mortgage foreclosure may still stand if there was proper notice so that the true facts could be discovered. Legal standards for proper complaints, affidavits and motions vary from state to state and even from county to county.
Pennsylvania is a judicial foreclosure state which requires a lawsuit begun by a formal complaint in order to bring mortgage foreclosure. The foreclosure complaint must include specific allegations including an itemized statement of the amount due. The amount due should be repeated in any motion or affidavit which is used to obtain judgment.