‘Big problem’ not expected to be found in state’s foreclosure investigation

Some big lenders have been under fire lately, after it was learned that many foreclosure documents were signed without ever being reviewed. But even though Wisconsin is now investigating, officials say they don’t expect the problem was that widespread here.

Last week, Attorney General J.B. Van Hollen announced that Wisconsin would join attorney generals across the nation in a joint investigation to determine if banks handling foreclosures were following the law. He said the state wants to make sure that if someone is going to swear in an affidavit, “that the contents of that affidavit are true that they’ve actually reviewed those contents and they are true otherwise it undermines people’s faith in the system as a whole.”

But Van Hollen says he doesn’t think the problem was prevalent in the state.

Russ Kashian, a professor of economics at University of Wisconsin-Whitewater, agrees.

“In Wisconsin, there wasn’t the credible buildup in these mortgages like they had in Nevada, and California, and Florida and so I think that the paperwork is probably pretty sound here, but if it isn’t sound then we should pursue that,” Kashian said

Van Hollen cautions the continuing investigation probably won’t change anything for the consumers who are facing foreclosure.

“Don’t assume that your foreclosure won’t take place or don’t assume that your foreclosure was inappropriate based upon this investigation,” Van Hollen warns. “It’s our expectation that we’re going to find that most if not all of these foreclosures were warranted.”

Van Hollen says that typically by the time the paperwork is forwarded for signature, that’s it’s usually already been well-determined that the foreclosure is justified.

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