I think the short story is that clerks were processing foreclosure paperwork and an officer (Vice President) was supposed to review and sign.  Apparently there are so many notices of defaults that to review the paperwork would be a full time job. From the banks point of view it seems the short answer is to “elevate” the clerks to Asst. VP’s. 

The second issue is that in order to initiate foreclosures the lender must hold the (Promissory) Note. When I worked in mortgage banking, our Notes were kept in the bank vault. But apparently during this last lending go round, loans were being sold so fast and furious that many of the Notes are missing. And apparently the lender cannot foreclose without the Note or certifying that they once had it but then lost it.  



Postponing foreclosures is not the answer to our real estate dilemma.  This will only put upward pressure on housing prices (supply and demand) for the short term.  The real estate market must be allowed to correct. Homebuyers continue to find a frustratingly limited amount of realistically priced homes for sale.

Read more here:

Related Post: Foreclosure Fraud its worth than you think