Rob McKenna
ATTORNEY GENERAL OF WASHINGTON
1125 Washington Street SE · PO Box 40100 · Olympia WA 98504-0100
For Immediate Release
April 6, 2011
Washington Attorney General’s investigation turns up additional foreclosure process problems
Attorney General steps in to ensure homeowners can contact foreclosure trustees
SEATTLE – Six months into its investigation into unlawful business practices by foreclosure trustees, the Washington Attorney General’s Office announced that it has uncovered an additional widespread problem that jeopardizes homeowners’ chances of stopping a foreclosure.
“Foreclosures run on strict timelines and homeowners need a human who they can talk with face to face when there’s a problem,” Attorney General Rob McKenna said. “They need an office where they can make last-minute payments or show documents that may prove reasons for stopping forced sales.”
“Washington law requires that foreclosure trustees maintain actual offices in our state and local phone numbers for this reason,” he continued. “But our investigation shows that some of the largest trustees are not in compliance and borrowers who have a legitimate reason to stop a foreclosure are having trouble reaching trustees.”
McKenna said his office’s Consumer Protection Division is contacting a handful of trustees believed to be violating the law. The office isn’t naming those trustees at this time, but said they are processing large volumes of foreclosures in Washington. In addition, the office sent a letter today to all trustees operating in the state that notifies them of their obligations.
The state’s Deed of Trust statute was amended in 2008 to ensure that trustees are knowledgeable about Washington law and that they are available for last-minute payoffs when homeowners are trying to catch up on their mortgages or have a legitimate reason to stop a sale. Having an agent in Washington State isn’t sufficient; the law also requires that the trustee itself maintain an office with a phone where homeowners can go to resolve their foreclosure issues.
The investigation is being conducted solely by the Washington Attorney General’s Office, which is also a participant in the multistate investigation by attorneys general into abuses in the mortgage servicing industry.
McKenna sent a letter to trustees in October 2010, announcing its concerns about inaccurate documents, conflicts-of-interest, faulty chains of title and failure to provide disclosures and conduct mediations. The letter called on trustees to suspend any questionable foreclosures.
Since then, the office has requested and received documents from several trustees. Attorneys are reviewing the information they have received so far and are waiting for documents from other companies.
McKenna said homeowners who believe they have a legitimate reason to stop a foreclosure should contact their trustee immediately, preferably with the advice of a housing counselor or an attorney. Foreclosure trustees have the power to postpone a foreclosure sale whenever they think it is advantageous. Some possible reasons for stopping a foreclosure include: a mortgage servicer failed to credit payments, the homeowner never received notice of the foreclosure, one division of the mortgage servicer promised a loan modification while the other started the foreclosure process, the homeowner has a genuine contract to sell his home but the servicer will not respond to the sales offer.
A homeowner who is unable to find a local address or phone number for their trustee should file a complaint with the Attorney General’s Office online at http://atg.wa.gov/FileAComplaint.aspx.
However, this will not stop a foreclosure sale. Homeowners should also contact a housing counselor or an attorney.
Washington is a “non-judicial foreclosure” state, which means that a lender can proceed directly to selling a home at public auction without first filing a lawsuit. This process was created by the state Legislature. Although lenders may foreclose in court in Washington, they almost always choose non-judicial foreclosures.
If a trustee is unwilling to stop a foreclosure, then the homeowner must file a lawsuit under the Deed of Trust Act and obtain a court order before the sale. Bankruptcy may stop or delay a foreclosure but it may also put the homeowner in a worse position. Legal representation is essential to a successful case, McKenna said.
BORROWER RESOURCES:
- If you believe unlawful activity has occurred in regard to your mortgage, you should speak with an attorney. A homeowner may file a suit to challenge a foreclosure, but they must do so prior to the foreclosure sale.
- If you are unable to afford a lawyer, you should contact the Washington State Homeownership Information Hotline at 1-877-894-4663 (HOME) for referral to the Home Foreclosure Legal Aid Project. The hotline can also refer to you to a free, state-approved housing counselor.
- The Attorney General’s Office cannot stop a foreclosure or provide individuals with legal advice, as the office is barred by law from representing private citizens.
- Homeowners should read the Washington Foreclosure Prevention Resources Guide, provided by the Seattle-King County Asset Building Collaborative Foreclosure Prevention Team and recommended by the Attorney General’s Office and the Washington State Department of Financial Institutions.
- Additional resources can be found at www.atg.wa.gov/foreclosure.aspx.
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4closureFraud.org
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Attorney General Letter RE Potential Unlawful Foreclosure Practices
Maybe we can still file in Kenya about our MERS ordereed foreclosure
You have to be willing to go all the way and stick to it. Why do you have to REMIND the Trustees to perfom foreclosures in good faith? Shouldn’t that be standard knowledge? It’s like you have to remind a child to brush their teeth. Of course these Trustees are not going to follow the law or a threat because they know nothing will be done to them. Again, like a child, if you just threaten and not follow through the child will continue their behavior. These AGs need to take action instead of telling these Trustees to pay nice. Nail these guys to the wall for all to see. Hell even put it on TV for the public viewing. All of this is a waste of time, because in the end the banks rule the world. People who have already lost their homes to fraudclosure will never see justice. We can only hope and pray future homeowners in foreclosure will prevail, but I have my doubts. The banks have all the control.
Contact an attorney if there is fraud in the mortgage? Are they literally joking? I can’t find a foreclosure defense attorney anywhere who wants to fight these criminals. They are telling homeowners in fraudclosure to fight for yourself, pro se. THE ENITRE JUDICIAL BRANCH INCLUDING THE ATTORNEYS WHO ARE SUPPOSED TO BE WORKING FOR THE PEOPLE ARE COMPLETELY CORRUPTED. WE THE PEOPLE DO NOT WANT A STINKING FRAUDULENTLY INDUCED LOAN MODIFICATION, THAT IS MORE FRAUD AND MORE ROBBERY!!! RESCIND OUR LOANS!!!!! SOON THIS IS GOING TO CA– USE COMPLETE ANARCHY IN AMERICA. THERE IS NO LEGITAMITE HELP FOR HOMEOWNERS ANYWHERE. THE RULES AND LAWS ONLY APPLY TO THE VICTIMS AND THE CRIMINALS ARE NOW THE SAINTS IN THE EYES OF THE LAW AND THAT IS NOT ONLY COMPLETELY CORRUPT AND IMMORAL, THAT IS THE LAW OF THE JUNGLE. IS THAT REALLY WHAT THEY WANT? THEY WANT TO KEEP TRYING TO IGNORE US AND THEY ARE PAPERING OVER US AS IF WE ARE YELLLING AT THE WALL. THEY ARE ASKING FOR MASS CHAOS. THE PEOPLE KNOW THEY WERE INTETIONALLY SET UP TO FAIL AND DEFRAUDED BY THESE FINANCIAL TERRORISTS ON A MASSVE NATIONWIDE SCALE. RESCIND OUR LOANS.
While he appears to be doing the job the banks and servicers and foreclosure mills do not take him seriously.He issued a letter in Oct.2010 to all trustees in the state to make sure that everything was investagated before foreclosure and they blew him off,so now were back to it again.It’s great to make a statement but standing behind it and enforcing it are not being done.Good intentions paved the road to hell and with nothing behind them thats all they will ever be.If you can’t walk the walk or talk the talk you’re in the wrong field of work.He does neither.
Washington State was one of the last states to experience the downturn and several people I talked to were in denial about our State being even being hit. Thank you for covering this. I hope Mr. KcKenna is aware of the severity of the fraud taking place here and continues thearing from homeowners affected by this fraud.
Thank you 4ClosureFraud for publishing this.
Kudos to McKenna. Sounds like he has more guts than some of the in-name-only AGs that are beholden to the system! All non-judicial states should be making similar rules to protect homeowners rights. It will help keep lenders honest (if that is possible) in non-judicial states and help stabilize the market, forcing lenders to give homeowners every possible chance to pay or short sell. I know in TN that lenders are ignoring legitimate short sale attempts as “too much trouble” and B of A is one of the worse offenders in this regard. They spout a good game on their website but in reality fail to deliver on their promises, refusing to re-appraise, opting for rubberstamp broker opinions that suit their own agenda.
Bravo to 4closurefraud.org for continuing to track and publish extensive nationwide news on the subject. Otherwise there would be no knowledge or access to the deception happening in the industry. I know of no other site or location for additional information. Any who have access to information please publish sources.
See these sites: livinglies.com; debtorboards.com; foreclosurehamlet.org and the other sites mentioned onscreen to the right of this article with comments. There is also a paularush.com, and Google Christine Baker and Bay House – she is a credit expert. If any of my listings is wrong, try it with .net or .org or .com instead of the extension I used. My memory may have been off a bit. Hope this helps.