Saturday, October 9, 2010

ARIZONA AG Goddard Warns 60 Mortgage Servicers About Possible Foreclosure Violations

NOTE:   Arizona is second largest hit by foreclosure crisis.  If you are facing foreclosure there is a free seminar Sunday in Arizona.    

terry Goddard Warns Mortgage Servicing Companies About Possible Foreclosure Violations, Demands Information
((Phoenix, Ariz. -- Oct. 8, 2010) Attorney General Terry Goddard announced today he is sending letters to more than 60 mortgage loan servicing companies in Arizona, warning them about possible violations of state law in document signature practices involved in home foreclosures and demanding a thorough review of those procedures to make sure they comply with the law.Those practices involve the use of "robo-signers" -- employees who may sign hundreds of foreclosure documents a day without reviewing their contents. Some of the nation's largest loan servicers have admitted publicly in recent days that their employees have signed thousands of documents without knowing what's in them. They further admitted that employees have signed affidavits that falsely claim personal knowledge of the facts and have sometime filed inaccurate documentation.

In the letters to servicers, Goddard said such practices likely constitute a violation of the Arizona Consumer Fraud Act. He demands that the companies review the documentation supporting foreclosures and immediately rectify all foreclosures or trustee's sales found to have been not legally justified.

"Several servicing companies have admitted that rubberstamping foreclosure documents was common in other states. If it took place in Arizona, I want it stopped," Goddard said. >>>keep reading by clicking title links

Excerpts from Arizona AG Facebook: (click to read full note on facebook)

Bank of America, the nation's largest bank by assets, today announced it is halting all foreclosure sales across the U.S., effective Saturday, in response to the "robo-signer" disclosures. The bank said it would keep its moratorium in place until it completes an assessment of its document signing practices in every state.
In his letters, Goddard also reminded the companies of a new state law that makes it illegal for some trustee's sales after July 29 to be conducted without first attempting to contact the borrower to explore options to avoid foreclosure. 
A copy of the letter to servicers can be found here:

2 days earlier a settlement with Wells Fargo was reached.  This will help some but not necessarily in the way they think. Some will qualify for principle reductions.   Read the information here
 Attorney General Terry Goddard announced a multi-state agreement with Wells Fargo Bank

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