the same month, one year ago jenna: we have more news on housing as well. get this, three major banks said they screwed up peoples foreclosure paperwork for their mortgages, and now they re halting foreclosures across the country because of this. the fox business fox business network joins us. what happened here? very simply, it s a matter of dotting the is and crossing the ts. there are 52 million outstanding mortgages in this country, roughly 4 1/2% are in foreclosure. two point three million. so j.p. morgan chase, bank of america, gmac have said we re going to stop the process and review those foreclosures that are currently in the legal system, to make sure the paperwork is accurate, because judges in some cases have said no to the bank during the foreclosure because in reality the bank doesn t own the notes anymore, they perhaps sold it and therefore, the person who s living in the home gets to keep living in it until the actual holder of the note brings foreclosure
who is watching and listening right know has a mortgage with one of the thee banks and i ll mention the other two gmac and jp morgan chase and bank of america what we re talking about now. what if somebody is holding is mortgage with one of the banks and is either is in foreclosure or near foreclosure? what do they need to know? well, it s understandable. for many of these people, there s little incentive to pay, as a matter of fact, before i came here, i looked on the internet and i found no less than a dozen companies with names like avoid mortgage foreclosure.com and dozens of others, guiding you to attorneys and other internet sites, giving you advice how to forestall the process and drag it on, perhaps a year or more. what if you have a mortgage through a different lender? i mean, we re talking about these three. we ve seen this with the airlines. yeah. one of them drops the price or starts charging for luggage and everybody else follows suit. are we going to see this now
procedures, both gmac and chase insist none of the processing errors resulted in inappropriate foreclosures. still, experts say the new confusion will only make things more difficult in an already stressed real estate market. we have a glut of foreclosures right now that need to be processed and gotten out onto the market and resold to borrowers who can afford them. if you delay it, you just put the pain farther down the road. that was peter alexander reporting. next week we ll have a report on pending home sales. well, it is the most popular social networking site on the web with more than half a billion members around the world, and now the man who created facebook along with a controversy surrounding the origin are the source of the new social network. i m marilyn dolby. what do you do? i m a second-year associate at the firm. my boss wanted me to sit in on the associate fees.
i can t rent a house for less than i m paying, so i don t want to end up on the street. reporter: nationwide one in seven borrowers are behind on their mortgage or in foreclosure. 95,000 homes were repossessed in august alone. bank of america joined gmac and jpmorgan chase in extending evictions across 23 states. the move is raising new questions about whether banks cut corners to expedite home repossessions. an employee with b of a acknowledged she approved up to 8,000 foreclosures a month and typically didn t read them. in a sworn deposition a gmac employee admitted to signing off on 10,000 cases a month. critics say that is robosigning where it is seemingly impossible for one person to review so many documents. this attorney says his client is among those who lost his home as bankers looked for shortcuts. i feel the time is now to stop this. reporter: all three lenders say they are reviewing their
watched, but definitely there was a u.s. connection. steve emerson, always sobering talking to you, but we do presh rate it, nonetheless. you bet. bank of america now says it is joining gmac and jpmorgan in stopping evictions and sales for foreclosures. right now they re reviewing whether they rushed through foreclosures without even reading the documents. peter alexander is in downtown los angeles with more. reporter: new evidence the nation s foreclosure crisis is far from finished. come on in. reporter: thousands of people, some from as far away as arkansas and florida, looking for free help in a last-ditch effort to hold on to their homes. among them, prentiss hill. what s your situation? the situation is i m in an interest-only loan that s killing me. i cannot rent a house for less than what i m paying. so i don t want to end up on the street. reporter: nationwide, nearly one in seven borrowers is behind on their mortgage or in