Attorney General Coakley Sues Banks Over Foreclosures: McGeough Lamacchia Realty Issues Response
Attorney General Coakley Sues Banks Over Foreclosures: McGeough Lamacchia Realty Issues Response
Waltham, MA (PRWEB) December 03, 2011
McGeough Lamacchia Realty, the #1 Listing Agency in Massachusetts, issued the followers summary in reaction to the suit brought against V statesman bank by Massachusetts Attorney General Martha Coakley for alleged illegal foreclosures and debt service practice:
“We’ve been saying this for years. Loan modifications have been the biggest creator of false hope by banks and the government since this proceedings crisis began,” says John McGeough co-factor/proprietor of McGeough Lamacchia Realty.
Coakley announced Thursday she is suing V subject banks, Bank of America, Wells Fargo, JP Morgan Chase, Citi, and Ally Financial (formerly GMAC), as excavation as Mortgage Electronic Registration System, Inc. (“MERS”) and IT adopter, MERSCORP Inc., in connectedness with their part in allegedly pursuing illegal foreclosures on property in Massachusetts as excavation as deceptive debt service including debt modification. (Commonwealth of Massachusetts v. Bank of America N.A., 11-4363, Suffolk County Superior Court, Boston).
“The single most significant situation we can do to instrument to a salubrious industrialism is to URL this proceedings Dunkirk,” Coakley stated in a sum-up Thursday.
Among other claim, Coakley alleges each of the Bank Defendants deceived Massachusetts borrowers about debt adjustment requirements resulting in increased and unnecessary defaults.
For example, the lawsuit alleges the Bank Defendants deceived Massachusetts borrowers by informing them they must be maiden 60 days delinquent to return a loan modification, when the truth is that delinquency is not always required. In case, if default is imminent, borrowers are supposed to be considered. Borrowers who otherwise may qualify for a loan modification were being improperly denied or dissuading from applying.(1)
“I applaud the Massachusetts Attorney General for including these debt alteration practice in their causa. We have seen hundred of homeowner maiden the conclusion ternion yr halt paying their mortgage because they were told they had to be late in command to be considered for a debt adjustment. Then after wait month, the debt adjustment was denied. By this clip, they are at matter sise month stern with no expectation of playing up,” say Anthony Lamacchia, co-agent/proprietor of McGeough Lamacchia Realty.
Trial alteration were wage to be deceptive as excavation. Prior to June 2010, Bank of America converted only approximately 30% of mistrial adjustment to perm adjustment. Wells Fargo reported a similar changeover charge for the clip play, while Citi and Chase hovered at approximately 40%.Borrowers were strung along in mistrial adjustment for niner month or thirster, subjecting them to plummeting recognition grade and climbing nonpayment amount.(1)
The Bank Defendants’ adjustment attempt have been so homeless that, for the former one-fourth of 2011, the United States Treasury Department withheld royalty of the HAMP (Home Affordable Modification Program) Servicer Incentives to Bank of America, Chase, and Wells Fargo, noting they were in “demand of substantial tenderisation.” (1)
They have also been suspect of penning loan and adjustment they knew their client could not afford and foreclosing on property where they were not the mortgage mortgagee.(1)
“We have been locution all along that distressed homeowners want the truth more than anything. If they do not qualify for a yearn term lend modification they merit to know and to know quickly so they have sufficiency clip to explore former proceeding alternatives such as inadequate sale which provide a graceful exit from a home if they are underwater and can no longer afford their place,” stated Lamacchia.
For statesman information about the lawsuit, visitation the New England Short Sale Blog
1.Commonwealth of Massachusetts v. Bank of America N.A., 11-4363, Suffolk County Superior Court (Boston).
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