WA AG & ReconTrust settles foreclosure lawsuit

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WA AG & ReconTrust settles foreclosure lawsuit

WA AG & ReconTrust settles foreclosure lawsuit

FOR IMMEDIATE RELEASE
August 15, 2012

ReconTrust settles foreclosure lawsuit

SEATTLE – The Washington State Attorney General’s Office has settled a case with a trustee company formerly doing business in Washington for failing to comply with the state’s laws governing foreclosure trustees.

In Washington state, foreclosure trustees are legally required to be neutral parties with local offices, available to borrowers during the foreclosure process, and willing to postpone a foreclosure when they deem it appropriate. Trustees must provide accurate information about how homeowners can stop their foreclosure, how much they need to pay to reinstate the loan, and to whom the money is owed. 

A lawsuit filed last year by the Attorney General’s Office accused Bank of America-owned foreclosure trustee ReconTrust of not following these requirements.

ReconTrust didn’t have an office in Washington. The company’s illegal practices, said Attorney General Rob McKenna, made it “difficult, if not impossible for borrowers who might have a shot at saving their homes to stop those foreclosures.” In its lawsuit, the Attorney General’s Office also said the company’s notices failed to identify the owner of the loan and provided confusing and contradictory information about what a borrower must do to stop a foreclosure

Assistant Attorney General James Sugarman, who spearheaded the lawsuit for the Attorney General’s Consumer Protection Division, adds that homeowners who have a legitimate reason to stop a foreclosure have a difficult time doing so even when trustees and loan servicers follow the law.  However, when trustees ignore requirements such as identifying the actual owner of the loan, providing a local address and phone number for the trustee, and accurately listing the amount of money needed to stop the foreclosure, then the chances of saving the home are even further reduced.  

ReconTrust is no longer doing business in Washington state. It paid nearly $1.1 million to settle the Attorney General’s Office case as part of the previous national multistate mortgage settlement with Bank of America, and according to the terms of the settlement filed in U.S. District Court in Seattle, it may only resume foreclosures here if it satisfies a long list of conditions imposed to protect borrowers.

“Our focus all along has been to make sure that those involved in lending and foreclosing follow the law,” said Sugarman. “That’s what today’s settlement accomplishes. ReconTrust will not be involved in foreclosures in Washington state unless it provides local offices where borrowers may go to resolve loan foreclosure problems.”

ReconTrust’s parent company, Bank of America, is one of the five mortgage lenders that agreed to a landmark $25 billion settlement this year with the states and the federal government. The settlement, the largest multistate consumer financial protection settlement in U.S. history, will provide as much as $25 billion in relief to distressed borrowers, including $648 million in benefits for Washington state homeowners, and direct payments to states and the federal government.

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Contacts:

  • Janelle Guthrie, Deputy Chief of Staff/Communications Director, (360) 586-0725
  • Dan Sytman, AGO Deputy Communications Director, (360) 586-7842

source: atg.wa.gov

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7 Responses to “WA AG & ReconTrust settles foreclosure lawsuit”

  1. THIS AG SOLD OUT THE WASHINGTON HOMEOWNERS THAT HAVE BEEN UNLAWFULLY FORECLOSED ON AND THE ONES STILL FIGHTING FORECLOSURE.

    ConsentDecreeFiled2012-08-14.pdf (660.1 KB) Download | Remove

    http://www.youtube.com/watch?v=swkq2E8mswI

    http://stopforeclosurefraud.com/2012/03/12/read-the-smoking-hot-banks-intentionally-and-thoroughly-violated-the-law-complaint-usa-vs-foreclosure-fraud/

    Between all this and Freddie not recieving the loans all should benull and void.
    http://stopforeclosurefraud.com/2012/06/21/freddie-mac-designated-counseltrustee-for-foreclosures-and-bankruptcies-2012/

    http://www.mortgage-mod-monster.com/fannie-mae-freddie-mac-refused-assume-title-deed/

    http://mandelman.ml-implode.com/2011/12/guest-post-welcome-to-freddie-and-fannies-mortgage-shell-game-by-shawn-t-newman-j-d/

    INCLUDING ROB MCKENNA ENABLING THE CRIME. See bottom of this article for Robs fourteen thousand in donations from Crabtree,(whom takes RECONTRUST POSITION) while he runs RECONTRUST OUT OF STATE. https://cloudedtitles.com/news/

    http://tvw.org/index.php?option=com_tvwplayer&eventID=2012060001B#start=2465&stop=2639

    http://ohiofraudclosure.blogspot.com/2011/06/wizard-of-oz-wall-street-trusts.html

    lOOK AT THE TWO FACED VIDEOS START THE FIRST AT 40.49 (he claims he going to sue multiple banks, and has only flied on RECONTRUST knowing full well RECONTRUST was pulling out of this state, and Rob McKenna was recieving fourteen thousand in champaign support. Which was exposed so he refunded it about ten months later when exposed.

    I emailed it out to everyone yesterday and posted it on http://www.propertydefensenetwork.com

    http://4closurefraud.org/2011/08/06/exclusive-citizen-warrior-video-of-washington-ag-rob-mckennas-press-conference-aug-5-2010-announcing-lawsuit-against-recontrust-in-washington-v-recontrust/

    https://cloudedtitles.com/news/ look at the bottom chart showing Rob McKenna took fourteen thousand in champaign funds from Crabtree, while ousting RECONTRUST, Crabtree taking over for RECONTRUST forclosing on Washington homes.

    http://www.heraldnet.com/article/20120215/NEWS03/702159806/-1/News article on McKenna returning fourteen thousand to Crabtree after clouded titles and Shelley Erickson exposed him on the web.,.

    Assembly member Weinstein said, “The best way to prevent wrongful foreclosures is with accountability. I’m proud to sponsor Attorney General Schneiderman’s Foreclosure Fraud Prevention Act – it provides a real and necessary deterrent to prevent criminals from unlawfully preying on homeowners. Moving forward, fraud will no longer be tolerated in New York. This bill sends that message loud and clear: if you break the law to take someone’s home, you will go to jail.”

    http://www.loansafe.org/new-york-ag-schneiderman-proposes-legislation-to-protect-new-yorkers-from-foreclosure-fraud

  2. State of Washington Sues ReconTrust / Bank of America

    Leave a Comment Posted by twainjr on August 5, 2011

    http://www.scribd.com/doc/61691768/State-of-Washington-v-ReconTrust
    •ReconTrust fails to maintain an office in the state of Washington
    •ReconTrust fails to negotiate in good faith with its borrowers
    •ReconTrust misrepresents authority to foreclose
    •ReconTrust prevents homeowners from having face-to-face contact with their trustee
    •ReconTrust prevents borrowers from delivering time-sensitive payments
    •ReconTrust clouds titles to homes it has sold at auction
    •ReconTrust has committed unfair and deceptive acts and violated its duty of good faith

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    Thousands of unlawful foreclosuer allowed to stand, that the homeowners should have been notifed and given their houses back. The forecloser gets off with a million to pay for the attorneys fees. Where is the justice? Another slap on the hand and oh well be good next time around, allowing a next time around. This is corruption swept under the carpet at the cost of the American tax payers and homeowners and all the harm caused by the corrupt banks forgiven. Only those that can afford an attorney will possibley get justice and not even then sometimes The vulnerable consumer that the AG office is to protect is left unprotected and the banksters are protected and slapped on the wrist. The only thing these banks are learning is that it pays to do the biggest heist crime in the history of man. There are no boundaries or accountablity for them. No jail time. It is a free for all for sophisticated criminals God protect America, our government will not.

  3. Pamela Edwards says:

    Can you say sell out sell out sellout.Thats what happened hear.Just another get it out of my hair and make it go away.

  4. dinsfla says:

    BAIN vs. METROPOLITAN MORTGAGE GROUP INC. | Wash. Supreme Court: MERS CANNOT BE BENEFICIARY IN WASHINGTON STATE!

    http://stopforeclosurefraud.com/2012/08/16/bain-vs-metropolitan-mortgage-group-inc-wash-supreme-court-mers-cannot-be-beneficiary-in-washington-state/

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