Summary Box: Foreclosure probe could force reforms

AP News
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Posted: Oct 13, 2010 6:22 PM
Summary Box: Foreclosure probe could force reforms

STATE PROBE: A joint investigation by 50 states and the District of Columbia could force mortgage companies to settle allegations that they used flawed documents to foreclose on hundreds of thousands of homeowners.

DOCUMENT PROBLEMS: Employees of several major lenders have acknowledged in depositions that they signed thousands of foreclosure documents without reading them.

POSSIBLE SETTLEMENT: But experts say lenders could be forced to accept an independent monitor to ensure they follow state foreclosure laws. The banks could also be subject to financial penalties.