A bill that would help protect consumers against forgeries or so-called robo-signing by mortgage companies is headed to Governor Nathan Deal’s desk. Both chambers of the state legislature passed the bill. Until now, prosecutors couldn’t mortgage companies for falsifying foreclosure documents.
Some of the money in the state’s mortgage settlement with big banks will be paid directly to the state to be used to avoid preventable foreclosures, but there's no legal requirement in Georgia law that it be spent for any particular purpose. Some lawmakers said they want to put the money in reserves.
Mortgage giants Fannie Mae and Freddie Mac are suspending foreclosures and evictions for the holidays starting next week. Several national banks are joining them in a two-week holiday reprieve, but real estate and housing experts said the break will not help most families save their foreclosed homes.
Georgia foreclosures were up in July despite a national downward trend. July foreclosures across the country dropped 7% from June to a four-year low. But in Georgia, they jumped 18%. One expert says, Georgia could be on the leading edge of a forclosure ramp-up after a temporary lull.