Biden wants foreclosure freeze in Delaware

By Keith Loria | Oct 7, 2010


WILMINGTON, Del. (Legal Newsline) - Delaware Attorney General Beau Biden announced on Tuesday that he has sent letters to three banks asking them to stop their foreclosure actions in the state until their foreclosure procedures are reviewed.

The letters went to Bank of America, JP Morgan Chase, and Ally Financial -- formerly GMAC. Over the past two weeks, many questions have been raised about foreclosure procedures at these banks and the industry as a whole.

The banks have already announced that they would delay foreclosure proceedings in 23 other states while they review whether their staffs signed foreclosure documentation in thousands of cases without verifying the accuracy of those documents.

Biden has called for a halt to all of their pending Delaware foreclosures as well. He is also seeking detailed information about the lenders' review and verification process and procedures and foreclosure-related complaints they have received from Delaware homeowners.

"When Delawareans sign a mortgage agreement with a bank, they expect the bank will follow Delaware's laws, rules and regulations," Biden said.

"Everybody has to play by the same rules. Just as homeowners have an obligation to pay their mortgages on time, banks also have to follow Delaware's mortgage laws. We are acting to make sure that mortgage banks are following the law and that Delaware homeowners receive all of the legal protections they deserve."

Biden's letters request that the banks provide his office with a detailed description of their existing foreclosure review and verification process, as well as a plan for all new procedures they develop going forward.

He also wants copies of all complaints received from Delaware citizens regarding the foreclosure process, including complaints relating to improper notarization of documents, inaccurate information in court documents, and/or improper signatures on documents.

Biden is also requesting a detailed explanation for the reasons the banks are suspending foreclosures in other states.

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