Recently, several banks have stopped foreclosure proceedings in states that require judicial foreclosures A judicial foreclosure means that the final proceedings require court action Ideally, a judicial foreclosure offers additional protection to the homeowner, because the bank has to prove that payments have not been made Connecticut is one of those states that has a judicial foreclosure process.

Now, banks are saying that they have potential paperwork problems and are taking more time to review their internal processes and documentation before presenting them to the court system.

Any foreclosure is, traditionally, a long process with a tremendous amount of paperwork involved With the current mortgage crisis coupled with the economic downturn, banks have been overwhelmed with the foreclosures When you add the multiple bank mergers of the past few years (with files being transferred from one corporation to another), you can see the potential for incorrect and/or missing paperwork According to the latest news, it does seem that a few of the major banks need internal paperwork review before proceeding.

What does this mean to you? If you are somewhere in the foreclosure process, this is going to delay the process for you I don’t believe that banks are going to stop the foreclosure process and give you back your home Wouldn’t that be nice? Only time will tell if the bank has all the proper paperwork in order to proceed.