Here's a new dimension of the foreclosure epidemic: banks repossessing houses on the basis of faulty and possibly bogus documents. Minnesota Public Radio's Jessica Mador reports that Attorney General Lori Swanson is checking whether the practice has spread to Minnesota, and a St. Cloud family facing foreclosure thinks it happened to them. It's part a national swarm of lawmakers raising questions about whether lenders are fudging documents and flouting laws in seizing houses from financially struggling Americans.The Washington Post notes a growing movement for a moratorium on foreclosures nationwide.
Judging by the calls and emails to Whistleblower, homeowners' frustration with sluggish action on mortgage modifications hasn't subsided from the last time I delved into this issue nine months ago.
UPDATE: Here's our story on the local requests for a moratorium on foreclosures, courtesy of my colleagues Chris Serres and Kara McGuire.
