"Read before you sign" has apparently not been standard practice among the nation's home-foreclosure document processors.

Over the last two weeks, Ally Mortgage, JPMorgan Chase, and Bank of America have acknowledged that their foreclosure-processing departments failed to read thousands of documents before signing them, prompting those lenders to call a halt to foreclosures in 23 states. The Office of the Comptroller of the Currency has ordered seven of the largest U.S. lenders to review processing procedures. Fannie Mae and Freddie Mac have ordered 1,400 loan servicers to check paperwork.

And on Tuesday, Democratic U.S. Sens. Robert Menendez of New Jersey and Al Franken of Minnesota and House Speaker Nancy Pelosi, among others, called for a federal investigation of reports of misconduct.

Pennsylvania and New Jersey - "judicial foreclosure states" in which lenders must file lawsuits before they can foreclose on properties - are among the places where timeout has been called. But what does that really mean for troubled borrowers?

The delay "could give lenders time to reexamine and restructure distressed loans they previously would have slated for foreclosure," said Michael Feder of real estate research firm RadarLogic.

It also could give borrowers time to get back on their feet financially and get current on their mortgage payments, Feder said, and might reduce the huge volume of foreclosed houses for sale, which tends to drag down prices overall.

Because lenders must sue to foreclose in New Jersey and Pennsylvania, they effectively swear under oath that they have reviewed the documents, said Beth Goodell, a lawyer with Community Legal Services of Philadelphia.

If the person signing the foreclosure documents has not read them, "you have lied to the court," Goodell said. "It doesn't necessarily mean that the documents are wrong."

In effect, that's what a JP Morgan Chase spokesman told Reuters: "We believe the accuracy of the factual loan information in the affidavits was not affected by whether or not the signer had personal knowledge of the precise details."

It's a quote only a lawyer could love, said attorney Eric Garrabrant, of Flaster & Greenberg in Cherry Hill.

"So, if you swear facts are true without knowing they are true, apparently it's OK, so long as they ultimately turn out to be accurate?" asked Garrabrant, who represents people in foreclosure.

For homeowners in the early stages of the process, the impact of the lenders' delay is unclear. But Goodell said people with mortgages from those lenders should not be going to sheriff's sale or face eviction.

For her and other observers, revelations of so-called "robo-signing" by foreclosure processors only serve to highlight the chaotic state of the financial industry, which seems to prioritize profits over having sufficient personnel properly trained to handle the high volume of paperwork the U.S. foreclosure crisis has produced.

"Ally's use of blind stamping tens of thousands of affidavits - to be used as proof of Ally's right to foreclose - just gives you a 'glimpse' of the underhanded actions that our law offices see every day," said Willow Grove-based attorney Bruce Shaw.

"Many lenders have absolutely no right to foreclose because of flawed assignments and their pooling and servicing agreements," he said.

One method of blocking foreclosure that has had limited success in some states, including New Jersey, is questioning mortgage ownership.

Because a huge number of home loans were packaged into securities for investors during the mid-decade real estate boom, it's more likely that any given mortgage is owned by many people and institutions than by the lender looking to foreclose. When asked for proof of ownership, in some cases lenders' lawyers have been unable to provide it.

Ultimately, flaws in the processing system may not give homeowners a new weapon in their often-long battles to keep their homes. But, Shaw said, they certainly will afford them a "justified break."

At most, said Rick Sharga, chief economist of the foreclosure-tracking firm RealtyTrac, the snafus will probably delay foreclosures for the next 60 to 90 days. Servicers will review the documents in question and implement internal procedures to comply with regulators.

"Once that's done, we'll probably see an escalation of foreclosure activity," he said.

If the reviews turn up major mistakes, or if a court orders review of tens of thousands of other records on prior foreclosures, "things could get very messy very quickly," Sharga said.

Especially if the banks have sold these foreclosed houses.

"If the bank or its subsidiary obtained title by virtue of a final judgment improperly obtained, then the sheriff sold the property based on that same improper judgment," Garrabrant said. A sheriff's deed can be challenged in court, as can the final judgment authorizing a sheriff's sale and the resulting bank deed.

It's equally possible, RadarLogic's Feder said, that delaying foreclosures will only push the economic reckoning for some homeowners farther into the future.

Contact real estate writer Alan J. Heavens at 215-854-2472 or aheavens@phillynews.com.