Mortgage Crisis

More Foreclosure Halts on the Way

GMAC Mortgage, J.P. Morgan Chase, and Bank of America have all recently halted home foreclosures after learning that crucial documents were being mishandled. Apparently, they’re just the beginning: The New York Times says several other companies will probably halt foreclosures soon because flawed practices are so prevalent. The problems all relate to court documents that must be submitted for foreclosure to proceed legally—some employees say they never read the documents, or they appear to have been falsely notarized. Six state attorney generals are investigating the matter.