State reviewing lenders' foreclosure practices

Posted October 5, 2010
Updated October 6, 2010

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— The state Attorney General's Office is launching an investigation into what officials call "questionable tactics" during foreclosures.

Investigators with the Consumer Protection Division have sent or plan to send letters this week to more than a dozen mortgage lenders operating in North Carolina to determine if they properly reviewed foreclosure paperwork or worked with customers to modify loans before taking their homes.

"If foreclosures are going through and the lenders aren't paying attention as to whether there's been a good faith effort, and they are foreclosing before that good faith effort to modify (a loan) has been done, then that's a problem," Attorney General Roy Cooper said Tuesday.

GMAC, Bank of America and J.P. Morgan Chase have already halted foreclosure actions in North Carolina and other states to review how the loans have been handled.

In addition, the Attorney General's Office wants information from Wells Fargo, CitiMortgage, SunTrust Mortgage, PHH Mortgage, OneWest Bank, PNC Mortgage, Aurora Bank, US Bank Home Mortgage, HSBC, MetLife Home Loans, BB&T Mortgage and American Home Mortgage Servicing.

The moves could lead to delays in more pending foreclosures in the state.

For Raleigh resident Dennis Cain, the effort might be too late.

Cain is in the process of moving from his townhouse, saying his attempts to modify his mortgage in recent years have become too much of a bureaucratic hassle.

"I've been living on edge for a year and a half. I wanted to go ahead and ease my mind," he said.

North Carolina Attorney General Roy Cooper Cooper discusses push for halting foreclosures

Two years ago, he said, he tried to modify his mortgage payments with Bank of America, and the plan was approved. Months later, he was told he was being evicted because he hadn't paid a fee that went with the modification. He said bank representatives told him he didn't need to pay it.

Since January 2009, he has tried to pay Bank of America, he said, but the bank won't accept his payments.

"I was angry. I was very angry," he said.

Bank of America couldn't be reached Tuesday for comment.

The Attorney General's Office is looking into Cain's case, but he said he has no idea when he will be evicted.

"I don't like being here when I don't know if somebody is going to show up at my door and say, 'You're locked out,'" he said.


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  • barbara28 Oct 7, 2010

    the government should greate new jobs for everyone so they can pay there bills again. that includes us older folks with illnesses that employers do not wont to hirer we are people to and we are in the worst position especially us females with no husbands.

  • barbara28 Oct 7, 2010

    the government should greate new jobs for everyone so they can pay there bills again.

  • Dalesma Oct 6, 2010

    So where should my children live when they are adults? Brazil?

  • Caveman93 Oct 6, 2010

    No tikisha, you're correct but the underlying problem is that the banks have failed bigtime to keep it legal. This is where things are about to blow up bigtime.

  • voice your opinion Oct 6, 2010

    My original argument wasn't about whether paperwork was filed correctly or not. It was about personal accountability. If you can't or won't make your house payment, then the bank (who ever owns it) has a legal right to foreclose on it. Banks or whoever owns the house, is a business and they are in business to make money. They are not a charity.

    I know that sounds harsh but it's no different than any other business that is trying to make a profit.

  • 2alegal Oct 6, 2010

    The attorney general needs to check First Franklin. They are not valid in the state of NC but are allowed to foreclose??? Something wrong there.

  • Caveman93 Oct 6, 2010


    Become familiar with contract law ie: cosideration and such. It will become much more clear to you why it's important to file paperwork accordingly and in "order". A violation of contract law is grounds for a lawsuit and in these cases many hundreds of thousands of lawsuits. This is not to include hundreds of thousands of lawsuits for fraud if you look at the notes that were doctored up. Check out my post which had the link to


  • whatelseisnew Oct 6, 2010

    "Let's see; you can own a home and have a job and make your payments, but what happens when you lose your job (as many people have)? Can't make that payment, you'll lose your house."

    Yep that is how it works. If you can not pay the loan, you lose the item that secures the loan. That is the way it should work and Government needs to stay out of it. The Pols are hollering that the banks should lend money, then they do not want them to execute their legal remedies for protecting themselves from loan losses.

  • voice your opinion Oct 6, 2010


    I have lived in my house for 15 years, have never missed a payment, and have never received a foreclosure letter. The bank isn't going to start foreclosure proceedings if you haven't missed a payment.

    With that said, you should know who owns your home b/c every time the loan is sold, you receive a letter from the current mortgage company and one from the new mortgage company telling you where to mail your payments. I know this b/c mine has been sold several times, yet my payments are always made on time and to the correct institution.

    Sounds like a bunch of excuses.

  • Bendal1 Oct 6, 2010


    I can only assume you're trolling and haven't done anything to learn about what is actually happening with these foreclosures.

    Let's see; you can own a home and have a job and make your payments, but what happens when you lose your job (as many people have)? Can't make that payment, you'll lose your house.

    Except, the banks have sold and resold mortgages so many times to so many firms they no longer know who owns what. To make matters worse, banks have split off foreclosure practices to shady companies, who are more than eager to cut corners on the process if it makes them an extra buck or two. That's why you hear of banks changing the locks on homes people still live in, and foreclosing on homes with up to date payments.

    It's a big mess and it's going to get worse.