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Senator Reid Calls Upon Big Banks to Halt Foreclosures Nationwide

Senator Reid Calls Upon Big Banks to Halt Foreclosures Nationwide

Senate Majority Leader Harry Reid (D-Nev.) has called upon all major mortgage lenders pleading with them to stop foreclosure proceedings in all 50 states Friday, after Bank of America announced it was stopping all foreclosure actions until it finishes an internal review of its foreclosure paperwork process. The announcement comes on the heels of GMAC/Ally's disclosure that many of its foreclosure cases were fraudulently prepared and the announcement by JP Morgan Chase that it is also halting its foreclosure actions pending an internal review of its foreclosure action document preparation process. These reviews could take several weeks. Nonetheless, it is widely believed that rampant bogus paperwork exists in connection with the foreclosure cases currently being conducted by these entities.

Reid, who earlier sent a letter to major banks asking them to suspend foreclosures only in Nevada, has since extended his request to include all 50 states. "I thank Bank of America for doing the right thing by suspending actions on foreclosures while this investigation runs its course," said Reid. "I urge other major mortgage servicers to consider expanding the area where they have halted foreclosures to all 50 states as well." "My primary focus is to protect Nevada homeowners who have been hardest hit by foreclosures in the most recent economic downturn", said Reid.

Nevada is one of the States hardest hit by the current foreclosure crisis. Attorney Generals and Governors across the Nation have called upon mortgage lenders to stop foreclosures until they can be certain that their foreclosure document processing system complies with State law. Some States have even invoked temporary moratoriums on all foreclosure proceedings until banks can show authorities that their foreclosure document process complies with State law requirements. Maryland has ordered major mortgage companies operating within the State to investigate their own procedures and report back with their findings. As of today, Maryland has not yet invoked a moratorium temporarily stopping foreclosures.

Interestingly enough on October 7, 2010, President Obama refused to sing into law a measure which would have allowed mortgage companies the ability to electronically sign foreclosure documents without the need of an actual written signature. In light of the current revelations of rampant foreclosure document fraud at the Nations biggest banks, is it any surprise that the President refused to sign this bill into law? I think not.