Connecticut Halts All Bank Foreclosures

Washington Post:

Connecticut Attorney General Richard Blumenthal on Friday ordered a moratorium on all foreclosures by all banks for 60 days--the most radical action taken by a state on issue of document irregularities.

California also expanded the moratorium on foreclosures it announced last week on Ally Financial foreclosures to include those by J.P. Morgan Chase.

Calling the companies' review of key foreclosure documents "a ruse," California Attorney General Jerry Brown (D) ordered J.P. Morgan to prove it is following the law before it continues foreclosures in the state.

Read the whole story: Washington Post

Comments

[castlerider]

03:00 PM on 10/02/2010

It's disgusting how the Fed's NOT acted or pushed banks to help, or resolve this from any possible other angle, as if to win a decisive battle, of such utmost importance.

For instance, if we could place a 2-year moratorium on making it 60 days before a mortgagelender reported a late payment instead of 30, with another year retroactively going back, it'd immediately improve so many scores. -Well enough for people who've suddenly come on harder times but've adjusted in enough time like responsible people they are, so they could buy the home they want, or finally sell the home they've been needing sold to someone who wants it.
Of course, no one would want to be encouraging late payments, so make it conditional on getting back within the 30 day payment period for maybe 2 months before someone could enjoy relief on their scores.
This ability to approve and BUY would release so much money back into the economy, also thereby bringing jobs into the best private sector of all, smack dab in the middle of the economy, the home industry.
Almost 30% of Americans now're under 600 fico scores . It's killing us... And MUST be repelled against strongly in our war against a dysfunctional economy.
Give people something to work towards, a strategy extremely welcomed, keeping people from GIVING UP.!!!.
We MUST dump dead weight and get our ship back to speed and momentum

[frank day]

10:19 PM on 10/01/2010

Whats going on is terrifying.
We're just about back to where we were before TARP.

Things could get ugly real quick.
This could prolong our "recession" for a long time to come.

[FogBelter]

07:11 PM on 10/01/2010

Well, if the banks can't produce the signed mortgage documents how can it foreclose on the property?

If I know the brilliance of business, I'm guessing those mortgages were shredded to save space by the companies that securitized them.

The question is, are any of the foreclosures that have taken place where the Bank didn't produce the mortgage still legal? This could be fun.

[letprosecutionsbegin]

07:33 PM on 10/01/2010

They'll find a way -- probably re-write the law called the fairness in consumer mortgage protection act (to expedite mortgage foreclosures process without the usual bothersome paperwork) like contracts and such. It will be hailed as a great victory for consumers. Still its going to take a bit of time -- the usual bribes -- and congress being recessed for pandering season and all ...

They must have thought housing (mortgage fraud) being what it was -- they shredded the documents -- before I mean they became triple AAA rated securities -- probably figured --- whoa we better burn this stuff before someone catch's on .. we'll worry about the details later ..

I mean let's face it -- it ain't exactly like the sociopaths are sufferin much.

[FogBelter]

07:38 PM on 10/01/2010

I think the system is collapsing faster than they can legislate fixes.

[lostinit]

07:09 PM on 10/01/2010

Stop the foreclosures until after the election and then they will resume. Just walk away folks, stop paying your mortgage and stand up to the crooks. Strength in numbers...

[Earl Davis]

07:09 PM on 10/01/2010

I'm sorry but this all just seems so dreadfully convenient. I'm wondering if this halt in foreclosures somehow benefits the banks in some way. I am in way over my head when it comes to financial stuff like this, obviously, but could there be some clause in all of these imploding CDO's and credit default swaps that makes it a good thing for banks that the foreclosures are being halted?

I mean, these same banks are the ones that twisted Congress and FASB's arm into saying they could mark-to-fantasy for as long as they wanted. Now they are letting themselves be stopped by some paperwork? Seems way too convenient.

[pfrogger]

07:04 PM on 10/01/2010

being involved in blatant fraud, involving thousands of mortgages and foreclosures, and billions of dollars, and the destruction of thousands and thousands of lives and their savings, and ...

more american "justice"?

IT IS FRAUD!!!! they are LEGALLY required to read the papers. they are LEGALLY required to have the note. when they SIGN their name, they and their company, ARE COMMITTING FRAUD!!!

thousands and thousands swindled and scammed. billions of dollars ILLEGALLY stolen.
it's not even legal, ie. it's ILLEGAL, and the rich and powerful still get away with it.
even most of the judges, ie. the specialists of the law, are allowing foreclosure WITHOUT a note.

and if you think that stopping these foreclosures is justice, then why is it that robbing a 7-11 gets jail time, yet committing MASSIVE FRAUD worth BILLIONS, gets ... a fine? how many of these people have been indicted? convicted?
when the rich were hiding their money at UBS and off-shore tax havens, they were given a chance to come clean with only a fine, and NO jail time. they lied and robbed america of billions of dollars over many many years. and they got amnesty? a fine?
but the 7-11 robber gets jail time?

more american "justice". there's the law that applies to us, and then the one that applies to them. unequal under the law.

[Marla Thurman]

07:01 PM on 10/01/2010

Somebody listened to Michael Moore!

[zootliberal]

06:58 PM on 10/01/2010

It's about frigin' time someone step in and stopped this madness.
A close friend just went through the tedious process of nine months of filling out bank forms (only to be told twice they had lost the forms), actually told they were going to have their mortgage adjusted - and then instead the bank foreclosed - it was the most unjust action. And it's heartbreaking, he worked hard all his life, he's a frigin' republican, he's in construction, the economy went south, his trying to retrain for another career and his family has lost everything. Meantime bank execs and greedy wall street fat cats could care less. sick.

[letprosecutionsbegin]

06:55 PM on 10/01/2010

The lead right now on HP (been up there awhile) is about a movie about a young turk who made billions creating useless dreck called "facebook" -- last I heard you can't eat facebook nor does it put a roof over one's head ---

meanwhile

The employment company CareerBuilder, in partnership with Harris Interactive, conducts an annual survey to determine the percentage of Americans living paycheck to paycheck.

In 2007, 43 percent fell into this category
In 2008, the number increased to 49 percent
In 2009, the number skyrocketed up to 61 percent
In their most recent survey, the number exploded to a mind-shattering 77 percent

Can the bread and circus get any more meaningless or moronic?

[lostinit]

07:07 PM on 10/01/2010

HAHAHA! The bread and circus bwahaha I love this.

[cyrano1]

06:53 PM on 10/01/2010

This news makes one ponder on what Texas will do.

Speed up foreclosures to make sure our economy completely tanks, thus effectively turning our government over to the multi-nationals?

What a game we're in!

[warren stickney]

06:51 PM on 10/01/2010

The US Justice department should stop all foreclosures and start looking into fraud ! Get off you but HOLDER AND DO SOMETHING ! THEY HAVE ADMITTED WRONGDOING , ISNT THAT A CLUE ?

[ticonderoga]

07:38 PM on 10/01/2010

Holder is just another brick in their wall.

[altohone]

06:49 PM on 10/01/2010

49 to go.

[J-Rome]

06:48 PM on 10/01/2010

A combination of good policy and good politics. Way to go Blumenthal!

[ticonderoga]

07:38 PM on 10/01/2010

Beats getting shot at in the Nam hey Blumie?

[J-Rome]

07:57 PM on 10/01/2010

I'll play. It's infinitely more preferable to being connected to the steroid deaths of mcmahon's employees.

[dangerousdaneerfan]

06:46 PM on 10/01/2010

While we are at it, let's stop repos on cars, quit paying our utility bills, and just walk into a grocery store and get whatever we want and not have to pay for it. No one would have to be responsible for a damn thing.

[pfrogger]

07:05 PM on 10/01/2010

the banks committed FRAUD, and they admit to it.
and you have not said one word against them. only the homeowners.
stay classy.

[pandolfini21]

06:38 PM on 10/01/2010

Way to go CT, now just put Lieberman, Dodd, and McMahon in a kayak to the North Pole please!