The attorney general has asked the state Judicial Department to freeze all home foreclosures for 60 days.
JM Morgan Chase announced on Wednesday that it would freeze foreclosures in about half the country due to paperwork problems that could affect more than 50,000 people in 23 states, the Washington Post reported. http://www.washingtonpost.com/wp-dyn/content/article/2010/09/29/AR2010092907268.html
On Thursday, a federal bank regulator told seven lenders to review processes they use for foreclosures, the Washington Post reported. http://www.washingtonpost.com/wp-dyn/content/article/2010/09/30/AR2010093006604.html
JP Morgan’s foreclosure documentation issues come just days after a signer for GMAC/Ally said under oath that he signed 8,000 to 10,000 foreclosure affidavits a month, Blumenthal said.
“This freeze should stop a foreclosure steamroller based on defective documents and enable effective remedies,” Blumenthal said in a news release. “The actions of GMAC/Ally and JP Morgan are inexcusable, a possible fraud on the court undermining the integrity of the legal process and consumers’ ability to fight foreclosures. Banks that lured consumers into loans they couldn’t afford now seek to stampede them into foreclosure. We must stop this runaway foreclosure train, restoring proper procedure and property owner rights.”
Blumenthal is a candidate for U.S. Senate during the general election in November.