Keith Loria Oct. 5, 2010, 3:16pm
BALTIMORE (Legal Newsline) - Maryland Attorney General Douglas Gansler announced on Monday that he has joined Gov. Martin O'Malley and U.S. Rep. Elijah Cummings in asking major mortgage companies from going through with foreclosure procedures in Maryland.
The request comes on the heals of several mortgage companies, including GMAC/Ally, admitting that they rubber-stamped foreclosures without reviewing all of the facts, Gansler says.
"In the last week, it has come to light that several mortgage companies admitted that they did not follow proper procedures in foreclosure cases and filed faulty affidavits," Gansler said.
"Following this news, it is completely reasonable for Maryland to ask these companies and others that operate in Maryland to review their procedures to ensure that Maryland citizens have not been negatively impacted as a result of similar practices."
The mortgage companies are currently reviewing the manner in which their affidavits are prepared, reviewed and signed, as well as the sufficiency of the process employed to verify elements of default leading to a foreclosure.
"While they undertake that review, we are asking these companies to halt foreclosure proceedings in Maryland until we are confident that no Maryland homeowner has or is in the process of losing their home as a result of a foreclosure proceeding that was not handled properly," Gansler said.