10 states and feds join to fight shady lending practices

“Ten state attorneys general and four federal agencies have announced the formation of a task force to combat mortgage fraud. According to a statement issued by Washington state Attorney General Rob McKenna, targets of the enforcement effort include equity skimming, bogus foreclosure rescue, straw purchases and unethical lending practices.”

Article:

Foreclosure jump in first half of 2009

“Foreclosure filings jumped to a record 1.9 million on more than 1.5 million properties in the first six months of the year, RealtyTrac said on Thursday.

The number of properties drawing filings, which include notices of default and auctions, jumped 9.0 percent from the second half of 2008 and almost 15 percent from the first half of last year.”

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Update: Foreclosure rescue scams

I just came across a useful blog entry that address the legal issues involved in type of suit I mentioned earlier here.

It appears from “The Lead Counsel Corner” that these scams are being monitor carefully by the FTC.  I hope the Illinois AG is working with them and other AGs to prevent the worst abuse of this sort from happening.

Countrywide sued for $8.4 billion

A complicated deal cut by the Attorney Generals of 15 states required Countrywide to reduce payments on thousands of mortgages to the tune of more than $8 billion.  However, Countrywide isn’t on the hook for that amount because they sold their interests to various trust.  This forces those trusts to suffer the depreciated value of these debts even though it was Countrywide that had engaged in the predatory lending.  Now the trusts want Countrywide to make up the $8 billion difference that they agreed to write down. 

Remember, Bank of America bought Countrywide and that stock went up today.  I guess the stock market isn’t too worried.  At least not today…

Complaint courtesy Courthousenews

Illinois Goes After Foreclosure Rescue Companies

State of Illinois sued a couple of these companies in state court for unlawful business practices which include not giving the homeowners, who are at high risk for foreclosure, any way to cancel their service contract for $1,250.00 nor were they giving the notices provision required by law.  In addition, the complaint states these companies had a history of calling these at-risk homeowners and demanding payment or threatening they would lose their homes.

Here are the companies named in the suit and also the websites:

American Financial Corp/National Foreclosure Counseling Service

www.savinghomesus.com

www.nfcscorp.com

Complaint courtesy Courthousenews.