Texas Attorney General Greg Abbott, who has called for a halt on foreclosures, told CNBC Tuesday that sorting through the problems caused by wrongful foreclosures could take months to unwind and require lots of legal work.
“I’m talking about foreclosures that were undertaken with inappropriate, inadequate or maybe illegal documentation,” said Abbott.
“It’s robo-signing as well as other inadequate documentation that could range from negligence all the way to perjury.”
He said financing companies could review their foreclosure processes likely by the end of October, making sure they’re handling the paperwork correctly.
Meanwhile, some of the country’s biggest banks and lenders have restarted foreclosing on homes.