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NJ Judge Brings Case Against Mortgage Lending Companies

By M. Stan Herring

The New York Post has posted an article about a case against the six largest mortgage lenders for their "shoddy foreclosure practices" and also for threatening to freeze thousands of foreclosures.

New Jersey Superior Court Judge Mary Jacobson, the judge presiding over the case, ordered the banks to appear in court to prove their foreclosure practices were completely legal.

Lawyers for banks ensnared in a nationwide robo-signing foreclosure scandal -- including JPMorgan Chase, Bank of America and GMAC's Ally Financial -- are scheduled to meet with Edward Dauber, the court's lawyer in the case, to discuss a possible deal this morning, court documents show. Dauber didn't return a request for comment.

The banks are going to try and prove that they've cleaned up their foreclosure practices after a scandal that showed banks were forging paperwork and robo-signing documents to speed up foreclosures. Stuart Rabner, New Jersey's chief justice, even made an unusual call that ordered banks to have to prove "their foreclosures are on the up-and-up within 30 days or risk their foreclosure cases being suspended." GMAC says it has postponed 1,800 New Jersey foreclosures until the case is cleared up. Citigroup says it currently has 4,023 pending foreclosures in New Jersey.

If you would like more information on foreclosures, please check out our articles The Three Stages Of Foreclosure In Alabama and Wrongful Foreclosures In Alabama.

If you have further questions or concerns, feel free to contact us through our website or by calling 205-879-2447. You may also obtain a copy of our free book on stopping wrongful foreclosures and the problems of hidden fees by emailing us. We have also started handling bankruptcy cases.

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Full post as published by Alabama Consumer Blog on March 02, 2011 (boomark / email).