Delaware Attorney General Biden calls on BoA, JP Morgan Chase and Ally Financial to halt foreclosures

[News_Editor]

Delaware Attorney General Biden calls on BoA, JP Morgan Chase and Ally Financial to halt foreclosures

2010-10-06 01:48:52 GMT+7 (ICT)

DOVER, DELAWARE (BNO NEWS) -- Delaware Attorney General Beau Biden on Tuesday called on three banks to stop foreclosure actions in the state amid questions about their foreclosures procedures.

In a letter sent to Bank of America, JP Morgan Chase, and Ally Financial (formerly GMAC), Biden called for a halt to all of their pending Delaware foreclosures until the banks complete a thorough review of their foreclosure policies and procedures. He also seeks detailed information about the lenders' review and verification process and procedures and foreclosure-related complaints they have received from Delaware homeowners.

"When Delawareans sign a mortgage agreement with a bank, they expect the bank will follow Delaware's laws, rules and regulations," Biden said. "Everybody has to play by the same rules. Just as homeowners have an obligation to pay their mortgages on time, banks also have to follow Delaware’s mortgage laws. We are acting to make sure that mortgage banks are following the law and that Delaware homeowners receive all of the legal protections they deserve."

In addition to calling on the banks to suspend Delaware foreclosures until their own review of their foreclosure practices is completed, Biden asks that they provide his office with a detailed description of their existing foreclosure review and verification process and procedures, including new procedures they develop going forward.

Additionally, Biden requested copies of all complaints received from Delaware citizens regarding the foreclosure process, including complaints relating to improper notarization of documents, inaccurate information in court documents, and/or improper signatures on documents. He also asked for a detailed explanation of the reasons they are suspending foreclosures in other states.

The three banks earlier announced they are delaying foreclosure proceedings in 23 other states while they review whether their staff signed foreclosure documentation in thousands of cases without verifying the accuracy of those documents.

"Foreclosure can leave long-lasting financial and emotional scars on children and families," Biden added. "Today we are taking another step to help homeowners by asking banks to suspend foreclosures until we can verify they have followed Delaware laws governing mortgage paperwork. It is important that no Delaware family loses their home because a bank makes a paperwork error."

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