Attorney General of Ohio sues Ally Financial and GMAC Mortgages for fraudulent foreclosures. JPMorgan and BAC are asked to halt foreclosure proceedings.
The Attorney General of Ohio has accused the Ally Financial and GMAC Mortgage (subsidiary of Ally Financial) for submitting fraudulent foreclosure documents in thousands of foreclosure cases in the state. The Attorney General has actually sued the lender and its subsidiary on the basis of the allegations. The lender halted the foreclosure proceedings in Ohio and 22 other states where judicial approval is required for the foreclosure process in the week preceding the first week of October. The lawsuit was filed by the Attorney General in Lucas County on Wednesday 6th October.
This move was made because several allegations came in against unlawful signing of the foreclosure affidavits, without verifying the accuracy of the documents by the bank employees. Richard Cordray, the Attorney General of Ohio has demanded several things in the lawsuit which are mentioned below:
An injunction that will stop the Ally Financial from proceeding with pending foreclosure cases in the state.
He has also demanded that the lender must be blocked from selling the homes which are foreclosed.
$25,000 penalty for every Ohio Law violation and consumer restitution.
The Attorney General argues that the lender has taken advantage of the dire circumstances and instead of helping the consumers who are in trouble, the loan servicer has increased their troubles using unfair practices. Ally Financial, on the other hand, says that the actions it took were not at all fraudulent or near fraudulent and that it will stand and fight against the charges put forward. A spokesperson from the GMAC Mortgages said that there could have been procedural mistakes, but they were not fraud and that the company has taken proactive steps to fix the issues created by robo-signing of the legal documents.
Lenders JPMorgan Chase and Bank of America were also asked by Cordray to suspend foreclosure proceedings and review their process. Citibank and Wells Fargo were also asked to meet the Attorney General's office for discussions on foreclosure proceedings.
Massive foreclosures all over the country have already caused tremendous problems; the banks are now pressurized to halt their foreclosure proceedings. Since the banks are desperate to get rid of their inventories, discounted and undervalued sales are becoming prominent. So, homebuyers can actually gain immense savings.
For the latest news on foreclosures and the most accurate foreclosure listings, visit ForeclosureDataBank.com.
