More Lenders Discover Flaws In Foreclosure Paperwork

Halted evictions due to flawed foreclosure documents are popping up all over the country, forcing lenders to review their files. Mortgage lender Ally Financial stopped evictions in 23 states this week alone due to inaccuracies, according to the Washington Post.

Consumer advocates and attorneys bringing the issued of flawed paperwork to light are encouraging distressed homeowners to review their foreclosure documents for inconsistencies. As of late, many have found mistakes and are trying to challenge their lenders before they are evicted from their homes, the Post reports.

Information from court documents and attorneys reveal that many documented mistakes are the result of lenders not following proper procedures, giving homeowners a chance to sue lenders for their irresponsible practices. Although documented mistakes may halt foreclosure proceedings, it may not be enough to stop them if the homeowner has been several months late on his or her mortgage payments. However, it may give them more time to explore debt relief options or find other accommodations before eviction.

Consulting with consumer advocates or finding an attorney who will work pro bono may help struggling homeowners find other ways to stave off foreclosure.