It’s A Start
The BBC is reporting that US banks are being sued over homes seizures:
Massachusetts is suing five major banks alleging “illegal” and “deceptive” conduct in the way they seized homes during the financial crisis.
Bank of America, JP Morgan, Wells Fargo, Citigroup, and GMAC must pay for the “harm” caused, the writ says.
Martha Coakley, the state’s attorney general, said the banks had no legal right to foreclose on “hundreds, if not thousands, of properties”.
The banks have expressed disappointment over the move.
The banks have been counting on the ‘Get Out Of Jail Free’ card that is part of the settlement that they have been negotiating for years now, but Ms Coakley has given up on the process because the banks have continued to violate the preliminary agreements they made when the process started, and are still stealing homes.
The real purpose of the system the banks set up was to avoid state and local fees and taxes on property transfers, so they are stiffing local governments of one of their important revenue sources, and the process isn’t legal in most states. Of secondary importance is the fact that if someone buys a ‘foreclosed’ property from the bank, they may not actually own it, as their title isn’t valid. This is screwing up the real estate market.
It’s nice to see someone is going after them.
