So the state of Washington is suing Recontrust alleging some bad foreclosure practices. Hmm, wondering if this was occurring in any other states. You think?
Wall Street Journal Blog on the Washington Attorney General suit against BoA foreclosing arm, Recontrust:
But Washington state’s allegations illustrate how banks’ mortgage-handling
processes could have compromised the integrity of foreclosure processes in
Among the allegations included in the lawsuit:
- Failing to identify the actual owner of the mortgage debt when filing
notices of default and failing to obtain proof that the foreclosing entity was
the actual owner of the debt.
- Failing to properly itemize fees or misrepresenting the amount of money
required to reinstate the loan.
- Failing to maintain an office in the state of Washington as required by law,
hampering borrowers’ efforts to make time-sensitive payments to stop a
foreclosure or to present documents that might challenge the legitimacy of a
- Conducting foreclosure sales in non-public places such as the garage of a
private office building.
- Filing improper documents when foreclosing on borrowers.
Washington state is asking for a court injunction to halt ReconTrust’s
practices and seeking a $2,000 fine for each violation.
Since the start of 2010, ReconTrust has filed in Washington more than 8,000
notices of trustee sale to initiate a home repossession, according to
ForeclosureRadar.com, which tracks foreclosure filings.