http://www.realtytrac.comFinancial Libraryen-usCopyright 2009 RealtyTracdarenb@realtytrac.comseoadmin@realtytrac.comRSS FeedRealtyTrac CMS system60http://www.realtytrac.com00http://www.realtytrac.com/contentmanagement/financialarticles.aspx?channelid=17&itemid=7538A federal bankruptcy judge has set a new precedent that could stop huge numbers of foreclosures nationwide. Her demand: Countrywide Home Loans must document every foreclosure claim it submits in Ohio.Peter G. Miller

A federal bankruptcy judge has set a new precedent that could stop huge numbers of foreclosures nationwide. Her demand: Countrywide Home Loans must document every foreclosure claim it submits in Ohio.

0Wed, 16 Sep 2009 08:00:00 GMTA federal bankruptcy judge has set a new precedent that could stop huge numbers of foreclosures nationwide. Her demand: Countrywide Home Loans — now Bank of America — must document every foreclosure claim it submits in Ohio. The decision by Judge Marilyn Shea-Stonum, the chief judge of the U.S. bankruptcy court in northern Ohio, could easily apply in all courts and with all lenders because it gets to a core problem: Large numbers of foreclosures are based on insufficient and sometimes nonexistent paperwork. The result is that lenders are foreclosing homes where they don't actually have a lawful claim, a process which pushes up foreclosure inventories.