On Tuesday, November 16, 2010, Illinois Attorney General Lisa Madigan filed legislation designed to reform the foreclosure process to protect homeowners. According to AG Madigan, the “legislation is the first of its kind in the country to address revelations that major banks and mortgage giants recklessly ‘robo-signed’ foreclosure fillings across the country.”
The bill would significantly tighten the requirements for affidavits filed in foreclosure proceedings to ensure their accuracy. A copy of the bill can be seen by clicking here HB 6951.
The legislation was prompted after major loan servicers across the country, namely GMAC/Ally, Bank of America and JP Morgan Chase, admitted their employees signed inaccurate foreclosure documents in court. These employees may have approved thousands of foreclosures without personal knowledge of the facts involved and without verifying underlying loan information.
Specifically, the proposed legislation would:
- Ensure affidavits filed as part of the foreclosure process contain a detailed description of how the person who signed the affidavit has personal knowledge of the facts, including what he or she did to verify that the amount owed is accurate.
- Require that banks verify in writing all efforts they have undertaken to keep the homeowner in the home, including loan modification efforts.
- Require that banks provide a detailed summary of the borrowers’ payments to ensure the borrowers know why the foreclosure is happening and can contest the foreclosure if the banks’ payment history is inaccurate.
- Require that a bank prove that it holds the loan and has the right to foreclose.
DeBlasio Law Group, LLC has extensive experience in litigation matters involving mortgages, both residential and commercial. Visit our website at www.DeBlasioLawGroup.com.