Massachusetts sues big banks over foreclosures

**ridgeabilly** · December-02-11, 07:08 AM

http://money.cnn.com/2011/12/01/news...osure_lawsuit/

We have an AG in Michigan [[Schuette) who sems to be more interested in prosecuting Grandmothers filling their legal Medical Marijuana prescriptions than going after his bailed out friends in the crooked, robo signing banking business who have operated with impunity in Michigan for years. We need a Martha Coakley in Michigan who has some integrity and courage. Our AG does not seem to possess those qualities.

**313WX** · December-02-11, 08:24 AM

Don't expect too much action for the "little people" from Lansing given the political makeup.

You'd be better off just moving to a more progressive state [[which Massachusetts is).

**Scottathew** · December-02-11, 08:45 AM

Keep in mind, the lawsuit isn't against foreclosures, but rather unlawful practices leading up to a foreclosure. For example, if someone requests a loan modification or assistance and it's summarily dismissed by an automated process, that most certainly doesn't sound fair.

Foreclosures, although they're painted as evil, are very necessary. Without foreclosures there would be no mortgage lending, because without recourse for default it wouldn't be possible for a mortgage company to do business.

However, in this case the Massachusetts AG is accusing the lenders of doing illegal things during the process, and that most certainly is worth investigating.

I've seen in the news where officials within Wayne County have promised to end foreclosures, but simply on the grounds of "it's bad times!". And that doesn't fly in my book.

**Downriviera** · December-03-11, 03:45 PM

Not only are the banks/servicers doing illegal things during the foreclosure process, they did illegal things in putting people in bad loans. There needs to be a moratorium on foreclosures now, until this mess gets straightened out. It was done during the depression and needs to be done now if the economy is to improve.

**Relayer76** · December-03-11, 07:24 PM

48091 says: "Foreclosures, although they're painted as evil, are very necessary. Without foreclosures there would be no mortgage lending, because without recourse for default it wouldn't be possible for a mortgage company to do business."

Actually it is also the responsibility of the lender to do due diligence to ensure that whoever they are lending to is in a position to pay it back and to be honest about the terms of the loan or mortgage. Not only were the terms often misrepresented but these mortgages were often aggresively marketed to people who were not even seeking a mortgage. Lack of regulation caused the crash of 1929 and it caused the ongoing economic collapse that started in 2008. Free markets are just fine but everything has to have some ground rules or what you end up with is anarchy.

**Jimaz** · December-03-11, 08:30 PM

Originally Posted by 48091

...Foreclosures, although they're painted as evil, are very necessary....

Snydely Whiplash agrees!

Attachment 11374
Dudley Do-Right and the Mortgage Crisis!!

**ordinary** · December-13-11, 08:58 AM

It kind of makes me wonder to whom the heck I'm making my mortgage payment. It started out with Standard Federal, then it was ABN-AMRO [[some firm in the Netherlands?), then it was something else I can't remember, and now it's CitiBank. I should have gone into the sign business the way these places are changing.

**Downriviera** · December-14-11, 08:26 PM

Originally Posted by ordinary

It kind of makes me wonder to whom the heck I'm making my mortgage payment. It started out with Standard Federal, then it was ABN-AMRO [[some firm in the Netherlands?), then it was something else I can't remember, and now it's CitiBank. I should have gone into the sign business the way these places are changing.

Good point. I wonder if CitiBank even has your note. I know in some states people have challenged their bank/servicer to produce the note and they could not.

**ordinary** · December-15-11, 02:06 PM

That's a good question. I guess in a way I'm probably "underwater" on the house but I doubt I could live cheaper someplace else.

**Thames** · December-17-11, 09:11 PM

Originally Posted by ordinary

It kind of makes me wonder to whom the heck I'm making my mortgage payment. It started out with Standard Federal, then it was ABN-AMRO [[some firm in the Netherlands?), then it was something else I can't remember, and now it's CitiBank. I should have gone into the sign business the way these places are changing.

LaSalle Bank.

I've been through the same thing.

**RaumVogel** · December-18-11, 04:09 AM

Good one, Jimaz!

**ordinary** · December-18-11, 08:32 PM

Originally Posted by Thames

LaSalle Bank.

I've been through the same thing.

Thanks Thames. I couldn't remember it.

**Thames** · January-16-12, 07:53 PM

Just got the magic letter today from citi via UPS.

They want to lower my interest rate by 1 1/2%. No closing costs, no appraisal, locked in rate.

I've heard of other people getting the magic letter, never thought I'd get one. Kinda feel like I just hit the lottery.