New rule requires attorneys to make sure documents are valid.
A sign lies on the ground in front of a foreclosed home in Homestead, Fla. In New York, Chief Judge Jonathan Lippman has created a new rule requiring lawyers to take responsibility to make sure all foreclosure paperwork is valid. New York — The chief judge of New York’s courts has implemented a new rule requiring every lawyer handling a foreclosure to sign a form verifying that all paperwork in the case is accurate.
The move comes amid an uproar over revelations that mortgage lenders nationwide cut corners on paperwork and legal procedure as they moved to seize millions of homes.
New York Chief Judge Jonathan Lippman said Wednesday the rule is intended to put lawyers on notice that they have an obligation to ensure that the documents they present to the court are valid.
The rule will require attorneys handling the nearly 78,000 foreclosure actions pending in New York courts to go back to their clients and verify that all proper procedures were followed.
» How the foreclosure fiasco threatens the economy [U.S. News & World Report]
» Chicago-Area Sheriff Halts Foreclosure Evictions [The Associated Press]
» Will Washington Let the Mortgage Put-Back Fiasco Escalate? [The Atlantic]
» House, homeowner caught in a mortgage meltdown [Miami Herald]