Ohio Attorney General Richard Cordray has requested a judge to order mortgage firm Ally Financial to halt the sale of foreclosures in the area. Majority of bank foreclosures around the country are currently on hold, providing a more open market for government tax foreclosure sales and other types of foreclosed properties.
Cordray's request is a subsequent action of the campaign started by the AG last week which involved a lawsuit against Ally for allegedly signing and filing faulty affidavits in cases involving Cincinnati foreclosure homes and foreclosed properties all around the state.
The campaign was prompted by an employee who admitted earlier that he has been signing foreclosure affidavits for Ohio home foreclosures in behalf of the mortgage company without having any personal knowledge of case facts; which in itself, is a violation of established state laws.
Ohio's AG has earlier in the week accused Ally of not doing anything to slow down the processing of foreclosed homes, alleging that the firm is not vacating the supposedly faulty judgments. He further alleged that Ally has been telling courts that it expects to again make requests for the sale of the residential properties and the eviction of their owners.
The mortgage firm has reportedly denied the accusations, stating that it has not proceeded with any foreclosure sale. The firm added that it is sticking with its earlier announcement that it will halt the sale of foreclosures in several judicial states which include Ohio. The freeze on foreclosure sales is being seen by some market observers as an opportunity for government tax foreclosure sales to get more chances of finding buyers.
The halt imposed by Ally and several other mortgage servicers all around the U.S. has been done to give the companies time to review alleged faulty documents related to foreclosed properties. The issue has become a nationwide concern, with AGs from almost all U.S. states joining a coordinated investigation aimed at looking into so-called improper practices by mortgage servicing firms.
According to latest housing market reports, the countrywide investigation also aims to put a stop to any improper practice within the mortgage industry. The move has put thousands of bank foreclosures all around the country on hold, leaving the home selling market on the hands of government tax foreclosure sales and other types of foreclosed properties not affected by the freeze.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.