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Paperwork fiasco or robo-signing, what will you like to call it? The banks are reported to sign off the foreclosures affidavits without actually verifying or reviewing the information present in those documents and this has attracted some unwanted legal attention towards the banks, forcing them to stop foreclosure proceedings and review the already signed off affidavits.

It is quite natural because the attorneys signing off the affidavits on behalf of the banks can never have knowledge on personal levels about those foreclosure files. This has forced JPMorgan Chase to halt its foreclosure proceeding in all the states (previously it was halted in 23 states because of large numbers of complaints being filed).

Reports reveal that about 56,000 consumer files have been affected by this paperwork fiasco. It was reported by one of the employees of JPMorgan Chase that his team was in charge of signing off some 18,000 foreclosure files every month and many of them were simple not reviewed.

GMAC is also reported to have 500 foreclosures signed off every day. The files are signed by a professional signer and the files are signed without reviewing and without even having the signatures notarized. This robo-signing issue can buy some time for the consumers facing foreclosure. This extra time can actually help the homeowners to sell off their homes instead of having them foreclosed. However, the major problem is that this halting of the foreclosures will not really overturn a large number of foreclosures and that the inventory of the banks will just remain piled up.

People who are looking to buy a foreclosed house will not have any problem because if there was any screwing up during the foreclosure process then, the lawsuit will be between the lender and the homeowner and the buyer will simply remain unaffected.

So, if you are willing to buy a foreclosed property, ForeclosureDataBank.com will be the best place for your search as we provide you the most comprehensive list of foreclosures for sale. Get the latest news on foreclosure here too.