According 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 "
Claudette Millette, Broker, Owner, The Buyers' Counsel - (508) 881-6230