The New York Law Journal reports that New York state has a new rule for foreclosures that will force a complete overhaul of the now-standard practices of the foreclosure business: Attorneys will have to certify under penalty of perjury that they have personally reviewed all the key documents -- in all pending and new cases -- and that they have spoken directly with their clients, the foreclosing financial institutions.

The business model of companies such as Lender Processing Services (LPS), which is involved in many foreclosures, does not currently involve such attorney-bank communication as a matter of course, and with robo-signed documents in so many files, much will have to change to get attorneys access to -- and time to review -- the underlying documents.

New York State Chief Judge Johnathan Lippman tells DailyFinance: "We're aware of what's going on, we don't live in a vaccum, and with all the reveleations coming from the lenders themselves of systemic problems, the flawed notarizations, the robo-signing, we feel we can't close our eyes to this. We're turning to the lawyers and saying talk to your clients, talk to people with knowledge of the proceeding and make sure they are credible. We are acting to preserve the integrity of the court system."

So, for the nearly 78,000 foreclosures pending in New York, business as usual can no longer be done, and foreclosures will grind to a halt until new processes are in place, ones that attorneys are willing to bet their licenses on.

And other states can't be far behind. How many and which ones remains to be seen. Each state legal system has its own procedures for rule-making, but the damage to court processes and the rule of law posed by the robo-signing scandal is just too great for New York to be the only state court to take steps to defend itself.

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jerri2222

Thank you Abby....for not giving up on this issue...you have no idea how many people you reach with your articles...

October 21 2010 at 11:06 AM Report abuse +1 rate up rate down Reply
jkennedy806

It's really a sad day, when the State Attorney Generals understand the complexity of what is going on, the homeowner being swindled, the townships and Counties loosing millions of dollars with the banksters not paying deed/real estate filing fees, and in addition, being saddled by extra paperwork in the court system. AND WHERE ARE THE WASHINGTON POLITICIANS??? WHERE'S BARNEY FRANK? wHERE'S tIMMY gEITNER? aND HIS SIDEKICK BENNY BERNANKE???? Vote them OUT, Clean the HOUSE and kick the trash to the curb. Junk Day is in Nov this year.

October 21 2010 at 9:05 AM Report abuse rate up rate down Reply
1 reply to jkennedy806's comment
jerri2222

They are playing hide an go seek with lobbyists...and out to lunch or playing golf with the Senate Banking Committee

October 21 2010 at 11:08 AM Report abuse rate up rate down Reply
Bearmaul

BREAKING NEWS; Following New Yorks example the AG of Iowa just announced even more stringent rules by implementing the ' Lawyers Must Truly Cross Your Heart and Hope To Die Certifying Foreclosure Documents' THIS JUST IN, THIS JUST IN: The AG of Ohio following New Yorks and Iowa's examples just implemented the nations most strongest foreclosure policy with his ' Double Dog Dare You To Tell The Truth Forclosure Documents Policy' President Obama stumping for votes across America called the 'Double Dog Dare You Policy' the most foward thinking policy yet developed by a Democratic Politician......

October 20 2010 at 9:14 PM Report abuse rate up rate down Reply
Bearmaul

BREAKING NEWS; Following New Yorks example the AG of Iowa just announced even more stringent rules by implementing the ' Lawyers Must Truly Cross Your Heart and Hope To Die Certifying Foreclosure Documents' THIS JUST IN, THIS JUST IN: The AG of Ohio following New Yorks and Iowa's examples just implemented the nations most strongest foreclosure policy with his ' Double Dog Dare You To Tell The Truth Forclosure Documents Policy' President Obama stumping for votes across America called the 'Double Dog Dare You Policy' the most foward thinking policy yet developed by a Democratic Politician......

October 20 2010 at 9:14 PM Report abuse rate up rate down Reply
Delbert

Boom for the lawyers, but pity the rich banks. They'll actually have to pay someone to look at paperwork.

October 20 2010 at 7:17 PM Report abuse rate up rate down Reply