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Friday, August 5, 2011

'Bank of America Death Watch Update: Lawsuit in Washington, Elevated GSE Claims'

from firedoglake......

"It’s not just Eric Schneiderman. Bank of America faces a new lawsuit from the state of Washington, whose Attorney General, Rob McKenna, is a Republican.

The case involves ReconTrust, a foreclosure trustee that forecloses loans serviced by BofA and is wholly owned by BofA as well. McKenna argues in the court filing that ReconTrust has “failed to comply with the procedures of the Deed in Trust Act in each and every foreclosure it has conducted since June 12, 2008.” That’s pretty unequivocal.

Among other things, ReconTrust doesn’t have a physical office in Washington, as required by state law. So homeowners facing foreclosure don’t have a physical site to register their complaint with the trustee. ReconTrust is also supposed to be under state law a neutral third party in managing foreclosures and trustee sales. Yet they are clearly biased on behalf of the lender – aside from being owned by them. They have also failed to contact borrowers about foreclosures, failed to prove that the borrower is in default and that the lender owns the property, failed to conduct trustee sales in public, and failed to legally produce documents relevant to the foreclosure. This includes robo-signing and document fabrication. McKenna also accuses ReconTrust of illegal fee increases and a lack of transparency.

ReconTrust’s only alibi here is that federal law pre-empts the state’s Deed in Trust Act, leaving the state unable to pursue the claim. Needless to say, McKenna doesn’t think much of that. He is asking for $2,000 for every violation, and remember, the assessment is that every foreclosure ReconTrust has conducted since mid-2008 has been fraudulent"................READ MORE

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