Follow-Up: First Lawsuit for Foreclosure Fraud Hits in Ohio

Ohio Attorney General Richard Cordray

Last week, we reported that JP Morgan and others were halting 50,000 foreclosures due to the mishandled processing of  foreclosures throughout the country.  But now, Ohio’s Attorney General has decided to jump in and hold at least one company accountable. Ally Financial Inc. and its GMAC Mortgage division, will be the first of many financial institutions in the country to feel the wrath of those who have lost their homes.

According to the Huffington Post, Attorney General Richard Cordray said yesterday that he will sue Ally and GMAC and the fraud case could include as many as hundreds of foreclosures in Ohio. In our last report, we noted the GMAC employee who said “he signed 10,000 documents a month without personally verifying the mortgage information.”  Cordray is basing his lawsuit on Ally’s employees that signed and filed false affidavits in an effort that Cordray said was meant to mislead courts.

We don’t know if Cordray’s cousin or his mother of SOMEBODY had a recent foreclosure happen to them, but he is seeing red and he wants blood.  Cordray’s lawsuit “is asking for civil penalties of up to $25,000 for every violation of the state’s consumer laws and for the company to pay back any financial losses to the homeowner. He also wants the court to halt any Ally foreclosure or sale of property now pending in Ohio.”

And he’s going after some other big dogs – JP Morgan, Bank of America, Wells Fargo and Citigroup – to see what they’ve been up to.  Read more here to see how some of us will finally get some, as James Brown put it, “get back!”

-J.C. Brooks

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