WASHINGTON (October 13, 2010)--Officials in Texas and the other 49 states announced Wednesday they have launched a joint investigation into allegations that mortgage companies mishandled documents and broke laws in foreclosing on hundreds of thousands of homeowners.

The officials, including attorneys general and bank regulators, will examine whether mortgage company employees made false statements or prepared documents improperly.

"This group has the backing of nearly every state in the nation to get to the bottom of this foreclosure mess," Iowa Attorney General Tom Miller, who is leading the probe.

The Texas Attorney General’s Office, which will serve on the working group’s executive committee, said the primary focus of the probe will be the accuracy and validity of documents used to support foreclosure proceedings.

“Specifically, the states will review whether individuals who confirmed facts supporting foreclosures - either in affidavits or other related documents - actually had personal knowledge of the facts to which they swore,” the Texas AG’s office said in a statement Wednesday.

“In recent weeks, some lenders have acknowledged using electronic devices to sign sworn documents. To the extent so-called "robo-signing" was used to sign foreclosure documents, questions arise about the actual personal knowledge of employees whose signatures appeared on the affidavits,” the AG’s office said.

Four large lenders already have halted questionable foreclosures after evidence emerged that bank employees processed thousands of foreclosure documents without reading them.

Other banks have not, however, and say they did nothing wrong.