This month, Massachusetts Attorney General Martha Coakley initiated a lawsuit against 5 major US banks. They have allegedly illegally seized properties, filed fraudulent foreclosure documents, and failed to help struggling borrowers who could have stayed in their homes if those borrowers had been allowed to make lower mortgage payments through a loan modification.
The lawsuit is against Bank of America Corp., Wells Fargo & Co., JPMorgan Chase & Co, Citigroup Inc., and GMAC, a subsidiary of Ally Financial Inc. It also names MERS, also known as Mortgage Electronic Registration System, Inc. and its parent company MERSCORP as defendants.
Ms. Coakley says that "the banks have charted a destructive path by cutting corners and rushing to foreclose on homeowners without following the rule of (MA) law.’’ She is trying to achieve some accountability for the banks’ apparent illegal behavior and is hoping to provide some real relief for homeowners.
This the first major legal action taken against these big banks talks started with them after state attorneys generals launched investigations into allegations of fraudulent and sloppy foreclosure-related practices. Coakley's office decided to sue because negotiations with the big banks have slowed to a crawl. They have failed to offer any meaningful restitution, according to the MA AG.
For more than a year the banks have not shown they understand their role in this economic mess. Her goal is to obtain, by force if necessary, some accountability from the banks.
Iowa Attorney General Tom Miller, who is leading the talks between the federal government and banks, said he hopes to reach a settlement soon that Coakley would find acceptable.
Lenders are disappointed about the litigation. They will apparently fight allegations of any wrongdoing. All of the opposing parties claim they did nothing wrong.
see also:
http://activerain.com/blogsview/1288683/ma-court-rules-that-a-foreclosure-may-not-be-a-foreclosure-
http://activerain.com/blogsview/2067015/congressman-explains-mers-and-mortgage-fraud
http://activerain.com/blogsview/521975/this-mers-stuff-gets-more-and-more-complex-
Heath Coker, Associate Broker
Robert Paul Properties
www.CapeGroup.com / capegroup@capegroup.com
508-274-5613 Licensed in MA
Its a beautiful day on Cape Cod!
@CapeGroup Skype: heath.coker
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