I find it horrifying that the State of Washington has refused to take steps to end non-judicial foreclosure in Washington State. After all, it's hardly a secret that mortgage fraud is running rampant across this nation.
To date, thousands of Washington homeowners have had their homes taken by servicers, banks and foreclosure mills who may or may not have filed fraudulent or incomplete documentation to initiate or complete a foreclosure against homeowners.
A percentage of homeowners who's homes were foreclosed on in this state had HAMP modification applications submitted when their homes were auctioned, despite written assurances posted in writing by the Home Affordable Modification Program guaranteeing that homeowners who applied for modifications through the site would not be foreclosed on until the application had been reviewed and a written decision had been rendered.
Other states are cracking down on Mortgage Fraud, but it's business as usual for banks, servicers and foreclosure mills in the State of Washington.
According to the Attorney General's Office, if a foreclosure mill auctions off a home prematurely, Washington homeowner's have no legal recourse to fight the foreclosure, even if the home was taken by fraud or without filing the proper paperwork required by State law. The banks, servicers and foreclosure mills win, thanks to Washington State's lax foreclosure laws.
Here is the Response I received to the Action Alert that was posted earlier in the week urging people to call Attorney General McKenna's Office:
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Thank you for voicing your concerns about fraudulent mortgage practices. Attorney General Rob McKenna has been a national leader on foreclosure issues and, like you, he wants a thorough investigation and a meaningful solution.
Washington state government officials are investigating foreclosure servicing problems from three perspectives:
The Attorney General’s Office and the Department of Financial Institutions have joined the National Association of Attorneys General and banking regulators in forming a multistate group to investigate whether mortgage servicers have improperly submitted affidavits or other documents related to foreclosures in their states. The Washington Attorney General’s Office is serving on the executive committee of the multistate group. The group’s initial goals include:
- Put an immediate stop to improper mortgage foreclosure practices.
- Review past and present practices by mortgage servicers subject to the inquiry.
- Evaluate potential remedies for past practices and to deter future improper practices.
- Establish a mechanism for more effective independent monitoring of future mortgage foreclosure practices.
On the local front, the Washington Attorney General’s Consumer Protection Division since May of this year has been investigating reports of lenders and trustee services not properly reviewing foreclosure documents or following other legal procedures. As part of that investigation, Attorney General McKenna sent letters on Oct. 13, 2010, to 52 trustees outlining his concerns and calling on them to suspend any questionable foreclosures in the state.
In states like Washington, foreclosure proceedings are generally undertaken by a third party trustee and not directly by the lender. This is why we’re requesting the trustees suspend questionable foreclosures until they can verify they are legal. The focus of our communication to trustees and servicers is directed at pending and future foreclosures. If the documentation, notices and processes involved in those comply with Washington law, they can move forward. If irregularities exist, they should be corrected before the foreclosure process is reinstituted.
Many consumers want a settlement that imposes criminal penalties. To be clear, the Washington Attorney General’s Office does not have the legal authority to initiate a criminal investigation or prosecution.
If you have specific information that you believe may be helpful to our investigation , please fill out a Foreclosure Trustee/Servicer Complaint Form on our Web site.
Free counseling and legal help is available for Washington homeowners facing foreclosure. These services are funded in part by a grant from the Attorney General’s Office using money obtained from our settlement with Countrywide/Bank of America.
If you are facing foreclosure, please contact the Washington State Homeownership Information Hotline at 1-877-894-HOME (4663) to be referred to a nonprofit housing counselor. The Washington Foreclosure Prevention Resources Guide available on our Web site is also an excellent resource.
If you believe unlawful activity has occurred in regard to your mortgage, you should speak with an attorney. A homeowner may file a suit to challenge a foreclosure, but they must do so prior to the foreclosure sale. The Attorney General’s Office cannot provide individuals with legal advice, as our office is barred by law from representing private citizens. If you are unable to afford a lawyer, you should contact the Washington State Homeownership Information Hotline at 1-877-894-HOME (4663) for referral to the Home Foreclosure Legal Aid Project.
For additional information about how the Washington Attorney General’s Office is cracking down on mortgage fraud and responding to concerns about problems in the foreclosure process, visit our Web site .
Again, thank you for writing.
Michelle Ferazza | Legal Assistant
Washington State Attorney General's Office
Consumer Protection Division
800 Fifth Avenue, Suite 2000 | Seattle, WA | 98104
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