• Illinois Attorney General Expands Probe of Foreclosure “Robosigners”

    The Illinois Attorney General’s office is expanding its probe of alleged “robosigning” of mortgage foreclosure documents. On May 25, 2011, the office announced subpoenas to two Florida-based mortgage servicing support providers that had not previously been under investigation.

    Subpoenas were issued against Lender Processing Services Inc. and Nationwide Title Clearing Inc. Both firms handle document preparation and management for lenders who are foreclosing on mortgages. Some of the documents requested by the subpoena are every affidavit used in an Illinois foreclosure or bankruptcy case since January 1, 2007. Also requested are the names of all employees who signed affidavits since then. The Attorney General is seeking lists of all current and former employees and information on the companies’ overall loan servicing processes including default servicing and loss mitigation.

    Both companies have until June 16 to respond to the subpoena.

    The probe is investigating foreclosures only. Short sales are not involved in the “robosigning” scandal.

    Illinois is one of many states that have been investigating questionable procedures used to foreclose on consumer’s homes by mortgage loan servicers. The Attorney General’s office had demanded information from 26 mortgage loan servicers in the state, but Madigan’s office stated that it was “turning our attention to third-party vendors that support the servicers in order to drill down to a greater degree in the servicing process.”

    If you are seeking foreclosure help, contact a Chicago foreclosure lawyer. You can learn about the options that are available for your situation through a foreclosure attorney.