Connecticut Attorney General Richard Blumenthal on Friday ordered a moratorium on all foreclosures by all banks for 60 days--the most radical action taken by a state on issue of document irregularities.
California also expanded the moratorium on foreclosures it announced last week on Ally Financial foreclosures to include those by J.P. Morgan Chase.
Calling the companies' review of key foreclosure documents "a ruse," California Attorney General Jerry Brown (D) ordered J.P. Morgan to prove it is following the law before it continues foreclosures in the state.
Both J.P. Morgan Chase and Ally have frozen foreclosures in 23 states because some employees had signed off on foreclosure paperwork without properly reviewing the files.
Colorado and Illinois have stopped foreclosures by Ally and at least seven other states have launched probes into the issue. But Connecticut is the first to institute an industry-wide ban.
A multi-state moratorium on foreclosures is almost certainly on the way in the next week or so. When it finally dawns on investors that the big mortgage banksare most likely guilty of massive, systemic fraud against millions of homeowners (and former homeonwers) then the jig is up. When it becomes apparent that these banks are also claiming billions of assets they don't actually own and may be liable for billions more in legal indemnity, their stocks will crater.
Connecticut's actions just froze the housing market there. More states will follow as they investigate. When they discover there's no titles...at all...then the game ends.
Be ready.
Wells Fargo is swearing up and down that their house is in order.
ReplyDeletehttp://www.calculatedriskblog.com/2010/10/foreclosure-mess-more-on-bofa.html
Of course, they swore up and down that they didn't need TARP funds. The administration had to put them in a headlock and smash cash into them, and then they still failed that weak-tea stress test. I had had their back until that very moment.
Won't burn me again, fuckers. Somebody audit the hell out of them, please?