Major US banks sued over homes seizures
Dec
2
Written by:
02/12/2011 13:57
Foreclosures may have been conducted illegally
The state of Massachusettsis is suing five banks for "deceptive" conduct after they allegedly seized homes illegally during the financial crisis.
Bank of America, JP Morgan, Wells Fargo, Citigroup, and GMAC were all named in the writ and each is being sued for the harm caused to home owners.
According to the BBC the complaint claims the banks violated Massachusetts law with "unlawful and deceptive" conduct in the foreclosure process, including unlawful foreclosures, false documentation, robo-signing (where banks employed people to sort out foreclosure documents without reviewing home-owners paperwork and circumstances), and deceptive practices related to loan modifications.
A statement from the state attorney general's office said: "The single most important thing we can do to return to a healthy economy is to address this foreclosure crisis. Our suit alleges that the banks have charted a destructive path by cutting corners and rushing to foreclose on homeowners without following the rule of law. Our action today seeks real accountability for the banks illegal behaviour and real relief for home-owners."
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