Foreclosures: State AG wants freeze

Colorado Attorney General John Suthers wants a freeze on sales of foreclosed homes.

Suthers late last month sent a letter to GMAC/Ally Financial requesting a review of the company’s foreclosure processes in Colorado and plans to do the same with other lenders soon, his office said today.

Suthers asked GMAC “to suspend evictions and … sales” of foreclosed properties in Colorado until his office can review GMAC’s procedures.

The AG’s office was expected to send letters to more lenders in the near future.

“We want to know whether the affadavit process — that’s being called ‘robo-signing’ – was used here in Colorado, and if so, how did it affect the foreclosure process,” said Mike Saccone, spokesman for the attorney general’s office.

GMAC has initiated more than 1,000 foreclosures in Colorado since Jan. 1. Another 6,500 or so foreclosures have been initiated by Wells Fargo and JPMorgan Chase & Co.

Saccone said that homeowners should be aware that there has not been a freeze on foreclosures in Colorado, except by Bank of America.

If people believe they’ve been defrauded by a lender or any foreclosure-rescue or modification firms, they should file a complaint with the attorney general by sending an email to Stop.Fraud@state.co.us or calling a hotline at (800) 222-4444.

Click here to read the Attorney General’s letter.

One Response to Foreclosures: State AG wants freeze

  1. Oh give me a break! Like John Suthers gives a crap about people losing their houses. Suthers only cares about one thing, becoming Senator John Suthers.

    ricky
    October 9, 2010 at 8:05 am