Lenders May Lack Proper Paperwork
By Jerry Kronenberg
Sunday, October 3, 2010
Massachusetts Attorney General Martha Coakley is calling on Bank of America and other lenders to halt all Bay State foreclosures amid indications that the firms lacked proper paperwork to seize thousands of U.S. homes.
“We are asking Bank of America and other major creditors to cease foreclosure proceedings for Massachusetts homeowners until they demonstrate that they have complied with Massachusetts law,” Coakley said yesterday.
The attorney general’s move followed word Friday that a Bank of America
executive admitted in a Massachusetts deposition to signing thousands of
documents in U.S. foreclosure cases without really looking at them.
The paperwork aimed to prove that Bank of America legally owned
delinquent mortgages on thousands of homes that it planned to seize
through foreclosure.
However, the Bank of America executive conceded in a deposition obtained by The Associated Press that because she signed 7,000 to 8,000 such documents per month, “I typically don't read them.”
That’s a stunning admission because banks can only seize homes when they clearly own the mortgages in question, something sometimes hard to prove because financial firms often trade mortgages like stocks these days. Failure to file proper paperwork every time a loan changes hands can make it unclear who owns a mortgage and has the right to foreclose.
Friday’s revelations prompted Bank of America to voluntarily halt all home seizures in 23 states that use so-called judicial-foreclosure proceedings. Mortgage giants GMAC and J.P. Morgan Chase have taken similar steps in recent days after evidence indicated they might not have properly checked paperwork, either.
However, the banks actions don't apply to Massachusetts because the Bay State doesn't use the judicial-foreclosure system.
So, Coakley yesterday called on the lenders to voluntarily extend their moratorium to the Bay State as well.
Paperwork flaws are calling into question the validity of tens of thousands of home seizures that banks have conducted during the U.S. foreclosure crisis.
The Massachusetts Supreme Judicial Court plans to hear arguments next week on a paperwork-error case that has the potential to invalidate thousands of foreclosures dating as far back as 20 years.
http://stopforeclosurestop.com is here to educate consumers and to help victims recover their losses and keep their homes. If you are a victim of bank fraud or predatory lending, it is possible to sue your lender for free clear title and money damages. We show you how to stop foreclosure and sue your lender.
It is possible to find out if you have broker fraud and/or TILA violations with a simple 20 minute phone call.
We believe that if you don't know your rights, you don’t know your options.