States Tell Big Banks: “Enough!”

October 10, 2011

Massachusetts Attorney General Martha Coakley has announced that her office is preparing to file lawsuits against big banks that engaged in unlawful foreclosures. Massachusetts is the latest state to proceed with litigation, despite on-going negotiations between big banks and state and federal representatives to resolve allegations of unlawful foreclosure practices.
Banks are accused of cutting corners and unlawfully rushing through foreclosure paperwork. Federal and state officials recently met with representatives of several large U.S. banks to discuss an agreement that would resolve class action lawsuits in the federal courts and provide relief to struggling homeowners across the country. Discussions with some of the nation’s largest mortgage servicing agencies, including Bank of America Corp, JPMorgan Chase & Co., Wells Fargo, Citigroup, and Ally Financial, have been taking place for over one year. States are becoming impatient.

“I have lost confidence that the banks will bring to the table an agreement that properly holds them accountable for wrongful foreclosures,” Coakley said in a statement. She also said that her office has “begun preparing for litigation.” The announcement from Massachusetts comes on the heels of California’s withdrawal from negotiations, stating that the deal under discussion would not provide enough relief to homeowners.

If you are facing a foreclosure situation, it is important to discuss your rights and explore your options with an experienced attorney. The foreclosure process is a mixture of state laws and contract rights, and understanding the situation is your first step in resolving it to your benefit.

The federal bankruptcy law can be used to stop a foreclosure and give you an opportunity to repay a mortgage arrearage over three to five years, strip off an unsecured junior mortgage debt, or just simply give you time to walk away from your home. Filing bankruptcy will stop the foreclosure immediately and put you under the protection of the federal law.

Get help today by calling an experienced >bankruptcy attorney. Bankruptcy can help you reclaim control over your debt situation and build a better financial future.

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