Martha Coakley Asks for a Halt to Massachusetts Foreclosures

By
Real Estate Agent with The Buyers' Counsel

Foreclosure home with gavelAccording to articles in The Boston Globe and The Herald, Massachusetts Attorney General, Martha Coakley has some major concerns about recent practices by some of the larger banks who have been foreclosing on homeowners in this state.  Specifically, the wide-spread use of "robo-signing."   

So-called robo-signers have readily admitted to having signed foreclosure paperwork that they have not actually read even though their signatures will be putting families out onto the streets, perhaps without proper justification. 

In response to this widening scandal, Coakley has written to officials at Bank of the America, Wells Fargo, JPMorgan Chase and Ally Bank's GMAC requesting a moratorium on further foreclosures until the matter has been thoroughly investigated. 

"If they're not complying with the law, it doesn't give the consumer enough time or opportunity to modify the loan or do anything short of foreclosure," Coakley has stated in an interview. "If that's what is happening, it's pretty outrageous." 

A number of large banks throughout the country have stopped foreclosures after the admission that employees were involved in signing and notarizing documents without benefit of even reading them.  Massachusetts is just the latest to weigh in on the problem. 

The number of foreclosures has been rising in Massachusetts.  According to the Warren Group there were 2,713 foreclosure petitions in August which was a 13.2 percent increase from last year. So, the situation in our state has worsened considerably.

The actual difficulties that distressed home owners are facing in this state are serious on their own but these careless and irresponsible tactics on the part of some of the nation's largest banks have only added further insult to the issue and could have far-reaching consequences.

Temporarily putting a stop to the hemoraging will help some home owners who may otherwise have been unfairly put out of their homes.  I only hope that when the bandaid is eventually removed that the ensuing flood of foreclosures does not present us with more of a surprise than what we are already expecting.

 

 Copyright 2010 "Martha Coakley Asks for a Halt to Massachusetts Foreclosures "

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Rainmaker
613,500
Todd & Devona Garrigus
Garrigus Real Estate - Beaumont, CA
Broker / REALTORS®

Claudette - Talk about making a bad situation worse, right? This is going to stir the foreclosure stew for sure!

Oct 06, 2010 05:51 AM #1
Rainmaker
292,777
Steve Davis
Davis Coastal Properties - Carlsbad, CA
Carlsbad CA

Claudette - Why not just arrest those who commit the fraud of Robo-signing. Put a few executivesof banks in jail and that might be the only way to get their attention. White collar crime is still crime. Stealing $500,000 homes is still stealing. Forged documents, back dating documents, not know who owns the note, not knowing where the note is, not recording the assignment of the note, plenty of things that were done illegally. Martha Stewart went to jail. Send the bank employees to jail.

Oct 06, 2010 05:57 AM #2
Rainmaker
403,998
Claudette Millette
The Buyers' Counsel - Ashland, MA
Buyer, Broker - Metrowest Mass

Really - I know that these banks are busy but not reading the document before signing is a bit on the irresponsible side.

 

Oct 06, 2010 05:58 AM #3
Rainmaker
403,998
Claudette Millette
The Buyers' Counsel - Ashland, MA
Buyer, Broker - Metrowest Mass

Steve & Carol:

I do not know whether or not there will be criminal liability here. But these banks should be accountable for what has transpired. Whether they are fined or something more severe, heads should definitely roll.

Oct 06, 2010 06:05 AM #4
Rainmaker
1,058,550
Steve Loynd
Alpine Lakes Real Estate Inc., - Lincoln, NH
800-926-5653, White Mountains NH

The banks are adding insult to injury, by making no efforts to keep the current home owners in their homes by offering modification options...they seem to be happier kicking folks out and applying for federal grants that working with families.

Oct 06, 2010 06:21 AM #5
Rainmaker
403,998
Claudette Millette
The Buyers' Counsel - Ashland, MA
Buyer, Broker - Metrowest Mass

Steve:

Well, they are supposed to be offering loan modification options but I do not think that has been happening very smoothly.  These institutions are obviously filled with over worked employees who cannot manage to stay on top of every day details.

 

Oct 06, 2010 07:21 AM #6
Ambassador
1,157,280
Craig Rutman
Helping people in transition - Cary, NC
Raleigh, Cary, Apex area Realtor

Steve stole my thunder here Claudette. Banks need to offer loan modifications to keep homeowners in their homes.

Oct 06, 2010 10:35 AM #7
Rainmaker
403,998
Claudette Millette
The Buyers' Counsel - Ashland, MA
Buyer, Broker - Metrowest Mass

Craig:

Just announced today is an investigation into the loan modification programs and their failures by the California Democratic Congress. 

In a letter today to Ben Bernanke and Eric Holder they are asking them to investigate the programs for  "routinely failing to respond in a timely manner, misplacing requested documents, and sending mixed signals about the requirements that need to be met to avoid foreclosures."

 

Oct 06, 2010 11:18 AM #8
Rainmaker
232,829
Ken Barker Realtor® GRI, E-Pro Certified
Dilbeck Real Estate - Burbank, CA

Claudette - It goes to show you that it is happening everywhere.

Oct 06, 2010 04:30 PM #9
Rainmaker
1,077,992
Bob & Leilani Souza
Souza Realty 916.408.5500 - Roseville, CA
Greater Sacramento Area Homes, Land & Investments

Claudette, I wonder how many more states will be added to the current list of 23 states already...hmmm...

:),

Leilani

Oct 06, 2010 07:19 PM #10
Rainmaker
403,998
Claudette Millette
The Buyers' Counsel - Ashland, MA
Buyer, Broker - Metrowest Mass

Ken:

It is definitely a wide-spread problem.

Leilani:

I would be surprised if it stays limited to only the current states.

 

 

Oct 07, 2010 12:12 AM #11
Rainmaker
516,588
Russell Lewis
Realty Austin, Austin Texas Real Estate - Austin, TX
Broker,CLHMS,GRI

Claudette, The Attorney General in Texas stoped them last week. I am not all that sure this will not just exacerbate an already confused and broken process.

Oct 09, 2010 02:06 AM #12
Rainmaker
403,998
Claudette Millette
The Buyers' Counsel - Ashland, MA
Buyer, Broker - Metrowest Mass

Russell:

I know exactly what you mean. When the moratorium ends it may just open up a floodgate of foreclosures that will be overwhelming.

 

Oct 09, 2010 03:59 AM #13
Rainer
334,235
Paul Gapski
Berkshire Hathaway / Prudential Ca Realty - El Cajon, CA
619-504-8999,#1 Resource SD Relo

yes they look so nice but Foreclosures are such tough on to stomach.

Oct 04, 2011 02:52 AM #14
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Claudette Millette

Buyer, Broker - Metrowest Mass
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