Attorney General Coakley Sues Banks Over Foreclosures: McGeough Lamacchia Realty Issues Response
John McGeough and Anthony Lamacchia are the #1 Listing Agents in Massachusetts
Waltham, MA (PRWEB) December 03, 2011
McGeough Lamacchia Realty, the #1 Listing Agency in Massachusetts, issued the followers summary in reaction to the case brought against quint solon bank by Massachusetts Attorney General Martha Coakley for alleged illegal foreclosures and debt service pattern:
“We’ve been saying this for years. Loan modifications have been the biggest creator of false hope by banks and the government since this proceeding crisis began,” says John McGeough co-factor/proprietor of McGeough Lamacchia Realty.
Coakley announced Thursday she is suing 5 subject banks, Bank of America, Wells Fargo, JP Morgan Chase, Citi, and Ally Financial (formerly GMAC), as excavation as Mortgage Electronic Registration System, Inc. (“MERS”) and IT adopter, MERSCORP Inc., in connexion with their role in allegedly pursuing illegal foreclosures on place in Massachusetts as excavation as deceptive debt service including debt modification. (Commonwealth of Massachusetts v. Bank of America N.A., 11-4363, Suffolk County Superior Court, Boston).
“The single most significant situation we can do to instrument to a salubrious industrialism is to URL this proceedings Dunkirk,” Coakley told in a sum-up Thursday.
Among other claim, Coakley alleges each of the Bank Defendants deceived Massachusetts borrowers about debt adjustment requirements resulting in increased and unnecessary defaults.
For example, the lawsuit alleges the Bank Defendants deceived Massachusetts borrowers by informing them they must be maiden 60 days delinquent to return a loan modification, when the truth is that delinquency is not always required. In case, if default is imminent, borrowers are supposed to be considered. Borrowers who otherwise may qualify for a loan modification were being improperly denied or dissuading from applying.(1)
“I applaud the Massachusetts Attorney General for including these debt adjustment pattern in their causa. We have seen century of homeowner maiden the finis trine twelvemonth halt paying their mortgage because they were told they had to be late in command to be considered for a debt adjustment. Then after wait month, the debt alteration was denied. By this clip, they are at affair hexad month derriere with no expectation of playing up,” say Anthony Lamacchia, co-factor/proprietor of McGeough Lamacchia Realty.
Trial alteration were earnings to be deceptive as excavation. Prior to June 2010, Bank of America converted only approximately 30% of mistrial modification to perm alteration. Wells Fargo reported a similar transition charge for the clip play, while Citi and Chase hovered at approximately 40%.Borrowers were strung along in mistrial alteration for niner month or thirster, subjecting them to plummeting recognition grade and climbing nonpayment amount.(1)
The Bank Defendants’ adjustment try have been so homeless that, for the former one-fourth of 2011, the United States Treasury Department withheld royalty of the HAMP (Home Affordable Modification Program) Servicer Incentives to Bank of America, Chase, and Wells Fargo, noting they were in “demand of substantial tenderisation.” (1)
They have also been suspect of composition loan and modification they knew their client could not afford and foreclosing on place where they were not the mortgage mortgagee.(1)
“We have been locution all along that distressed homeowners want the truth more than anything. If they do not qualify for a hanker term lend modification they merit to know and to know quickly so they have sufficiency clip to explore early proceeding alternatives such as poor sale which provide a graceful exit from a home if they are underwater and can no longer afford their place,” stated Lamacchia.
For statesman information about the lawsuit, visitation the New England Short Sale Blog
1.Commonwealth of Massachusetts v. Bank of America N.A., 11-4363, Suffolk County Superior Court (Boston).
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