Wells Fargo Forced To Refile Foreclosure Documents

The most recent foreclosure crisis continues to escalate as more banks and lenders are forced to review or refile paperwork. Wells Fargo is the latest financial institution to announce its reevaluation of foreclosure documents, reporting it will refile more than 55,000 records, according to The Los Angeles Times. However, the bank said it will not halt foreclosure proceedings during its review.

Wells Fargo said it found errors in the certification of legal affidavits as well as the final sign-off of documents, the newspaper reports.

Bank of America, J.P. Morgan Chase and Ally Financial have all been forced to halt suspensions in foreclosure proceedings in more than 23 states across the U.S. The volume of erroneous paperwork has led to a number of lawsuits from homeowners who have noticed problems in their mortgage documents. The crisis has also sparked fears over future title issues for buyers who purchase foreclosed homes.

Many lenders have said lawsuits will not provide debt relief to homeowners who stopped making or fell behind on their mortgage payments. Rather, the lawsuits will suspend evictions and give consumers more time to make alternative arrangements.