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.    

 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: http://www.azag.gov/press_releases/oct/2010/Mortgage%20Loan%20Servicer%20Letter.pdf

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

BAC or Bank of America: Foreclosure Freeze is Nationwide 50 states

Statement from Bank of America Home Loans

“Bank of America has extended our review of foreclosure documents to all fifty states. We will stop foreclosure sales until our assessment has been satisfactorily completed. Our ongoing assessment shows the basis for our past foreclosure decisions is accurate. We continue to serve the interests of our customers, investors and communities. Providing solutions for distressed homeowners remains our primary focus.”  FURTHER INFORMATION  for customers:  1 800 809 0231 BOA customer 1-800 669 6607  Country Wide customer ************************************************************** MY EXPERIENCE:    I called the press line to ask question for my blog.  Left a message and await a call to answer my questions.  I called the hotline above - as a Country Wide customer.  The recording states that  they are BOA, a company that services  your home  loan.  Since I have been foreclosed and evicted last spring, I was surprised to learn that I show as active customer.  They are debt collector. And are recording my call for  quality assurance. Big surprise there, right?  I was cut off... so 2nd try.  Similar to above only there is no way around giving up your information. You must have account number or social and zip code. This time I pressed the button reflecting that  I wasn't interested in home retention division; but,   I was sent there and advised that they are debt collector.    After a few moments with representative I was transferred to the REO department. From there, I was placed on hold.   If you want to become an REO real estate person press 2.  Not me, I pressed 3 for escalation of REO.  We will see.  Another wait.... OOPS voice recording... your call was unable to be completed, please hang up and call the toll free number again.  I guess none of the choices applied to me. I think choice one was for finding REO properties, again I wouldn't' buy a foreclosed home unless deeply desperate. No thanks,  this is part of what my problem of dealing with Banks has been.  transfer, wait, transfer wait and a huge cell phone bill later!   Good Luck with your calls. If you are not evicted yet, then you will have a much better experience than me. :)