New York courts impose new foreclosure rule

FacebookTwitterRedditDiggStumbleUponTumblrLinkedInPinterestEmailShare

Who woulda thought this wasn't being done?

(Reuters) - New York courts will become the first in the United States to require lawyers handling foreclosures for banks and servicers to take steps to ensure the procedure is done properly, the state's top judge said on Wednesday.

Effective immediately, lawyers representing the plaintiffs in residential foreclosure actions must file signed affirmations that they took reasonable steps to verify the accuracy of documents.

New York is one of 23 states where court approval is needed to foreclose.

Jonathan Lippman, the chief judge of the New York State Court of Appeals, said the rule is in response to disclosures by several mortgage lenders of problems in the foreclosure process, including in the notarization and so-called "robosigning" of documents.

FacebookTwitterRedditDiggStumbleUponTumblrLinkedInPinterestEmailShare
  • Solon in CA

    So does this mean that the lawyers are at risk of contempt if it turns out the paperwork was FUBAR'd. A few perp walks and no one will want to do a FC.