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Joel Grover investigates a home foreclosure where the house was auctioned off even though the buyer had arranged for it to be sold.
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California Joins Multi-State Foreclosure Investigation
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Did banks violate the law by cutting corners when foreclosing on homes? That's the legal question Atty. Jerry Brown hopes to answer as he joins a multi-state investigation into the practice.
California will join a task force headed by Iowa Atty. Gen. Tom Miller to investigate banks' foreclosure processes, according to the Los Angeles Times.
The investigation comes in the wake of revelations by several big banks that executives made paperwork errors and "robo-signed" numerous foreclosure proceedings without reading the documents.
Bank of America Corp., the nation's largest bank, said last week it would stop sales of foreclosed homes in all 50 states as it reviews documents used to process foreclosures.
GMAC has also halted foreclosures in 23 states after the company admitted an employee approved thousands of foreclosures without reading paperwork. A government watchdog group was investigating.
Statewide, 17,841 properties ended up on the auction block in September -- 16 percent more than in July, but little changed from a year earlier, according to ForeclosureRadar.com.
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