Sale of Foreclosure Auctions Process Questioned by North Carolina AG- By: John Cutts

Description : The Attorney General's Office of North Carolina has sent Wells Fargo & Co. a letter expressing concern over the process the bank uses in the sale of foreclosure auctions. The letter was sent following the bank's announcement that it will be resubmitting affidavits for foreclosure cases in 23 states that do not include North Carolina.

Foreclosure cases in the state, including Winston Salem foreclosures, do not require a judge's signature and court clerks are the ones tasked with reviewing documents for such cases. This, according to reports, is why North Carolina was not included among the 23 states in Wells Fargo's list.

The bank has earlier announced that it did not find any problem with its foreclosure processing. However, it later revealed that it is planning to resubmit documents on 55,000 cases after allegedly finding some instances when procedures have not been strictly adhered to. This led the AG Office to question why the bank is not doing the same with North Carolina foreclosures for sale that the bank has handled.

According to the AG, if the bank is confident about the way it has handled sale of foreclosure auctions cases, then there should be no need to resubmit documents. Officials from the AG Office further added that if Wells Fargo is planning to take such actions in 23 states, then it should also do so in North Carolina.

The letter from the AG Office also stated that using unverified documents in processing bank foreclosures on sale can be considered an act of fraud. The letter further argued that the bank might just be claiming that it tried to modify mortgages for struggling homeowners, but without solid proof, the claim might just be that a claim.

The state's senior deputy AG Adam Hartzell has requested Wells Fargo to detail how it provides information on legal foreclosure proceedings in North Carolina. Hartzell also requested the bank to explain the specific actions it has taken to help troubled homeowners modify their mortgages prior to pursuing a foreclosure action. Wells Fargo did not put a temporary halt on the sale of foreclosure auctions during the documentation controversy, unlike Bank of America and other lenders.

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Author Resource : John Cutts has been educated in the finer points of the foreclosure market over 5 years.