For the second time this month, a lender is suspending home foreclosures because of problems with legal procedures. The move by JP Morgan Chase impacts 56,000 foreclosures in 23 states where home seizures require a court order.
Earlier this month, GMAC Mortgage – the nation’s fourth largest home loan lender – announced a similar move. The company issued a two-page “urgent” memo dated September 17 telling brokers to immediately stop evictions, cash-for-key transactions, lockouts and to suspend sales of properties already taken back by the bank in foreclosure in the same 23 states. GMAC also began withdrawing affidavits in pending court cases. (more…)

