CNBC – The Next Robo-Signing Crisis?

It’s the next big shoe to drop in the robo-signing foreclosure scandal. Call it part two.

We already know banks halted foreclosure sales when it was discovered that servicers took short cuts, so-called “robo-signing” in the foreclosure sale process in judicial foreclosure states -about half the country.

Now it appears they may have done the same thing in the Notice of Default process which takes place in the other half – i.e. the non-judicial states.

(Judicial foreclosures are those that are processed through the courts whereas non-judicial are processed without court intervention.)

A Notice of Default is the notice sent out in non-judicial foreclosure states that alerts the borrower that the official foreclosure process has begun. It is also filed with the county recorders office and allows the notice of foreclosure sale to be published. What’s so important is that this is the process in California, Nevada and Arizona (AZ is both judicial and non-judicial), which have three of the top four foreclosure rates.

Last week an article from American Banker titled, “New Point of Foreclosure Contention: Default Notice” circulated widely among the folks who follow the mortgage mess. It talked about how several lawsuits are now being filed contending that the Notice of Default process was flawed and the foreclosure therefore invalid.

Check out the rest here…

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4closureFraud.org