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AG Wants Proof Shown for Home Forclosures
(IRN)-The Illinois attorney general is demanding that more loan servicers halt home foreclosure filings, until they can demonstrate the validity of their documents.

GMAC, Bank of America and JP Morgan Chase had already been asked to suspend foreclosures, and they have complied; now 23 more lenders are facing the same demand, due to fraudulent documents being used to move foreclosures through the courts, says Attorney General Lisa Madigan.

"The reason that our economy is facing the situation it is today is because we had predatory mortgage giants illegally putting people into loans in the first place, and now they're illegally throwing people out of their homes," she said. "It is a situation that has got to end."

The lenders have admitted publicly that employees had signed hundreds of affidavits each day without reviewing the foreclosure documents. The affidavits from these so called "document mills" have been used to press foreclosure cases, even though affidavits require that the affiant have personal knowledge of the facts set forth in the affidavit.

Madigan says if these lenders comply with her demand, it will significantly slow down the foreclosure machinery in Illinois. Madigan says she'll push for state legislation to assure that the plaintiff is the legal owner of the loan and has the right to foreclose.

(Illinois Radio Network)
10 08 10 by Newsroom
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