Are false foreclosures more widespread than banks will admit?

Chase CEO Jamie Dimon has publicly stated that despite the foreclosure paperwork problems, no one is loosing their home that doesn’t deserve to.  Is it possible that JPMorgan Chase’s CEO doesn’t have a clue how bad the problem really is?

According to Diane Thompson of the National Consumer Law Center, who testified before the Senate Banking Committee this week, 10% of the foreclosure related cases her office handles involve borrowers that weren’t even default on their loans.  She believes that lost paperwork and other issues are causing homeowners who are current on their loans to be brought to court for foreclosure.

If that is a fair representation of all foreclosure activity, this is a HUGE problem waiting to see the light of day.

Given that Chase is one of the largest mortgage servicers, it seems unlikely that it alone would have a perfect record of never foreclosing on people who were current on their loans while it was a widespread problem at other banks.

Perhaps Jamie Dimon is in for a real surprise when he finds out what is really going on with his bank.

Time to short Chase?

1 Comment

  • By MRJOHN, November 19, 2010 @ 5:10 am

    Demon is “a piece of work” isn’t he???

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