This should prove to be interesting,
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.
AG Coakley: Stop Bay State foreclosures
October 03, 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, according to the Boston Herald
“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 documents 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 that is sometimes hard to prove because financial firms often trade mortgages like stocks. Failure to file proper paperwork every time a loan changes hands can make it unclear who owns a mortgage and thus 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 do not apply to Massachusetts because the Bay State does not 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.
AI
