Martha Coakley is stepping into the mortgage mayhem on behalf of her constituents. On Oct. 18th, the Boston Globe reported that Massachusetts Attorney General Martha Coakley will file a lawsuit against mortgage lenders who have abused their power. The lenders have not been named nor has their been a date set for the suit. There is speculation that is is in response to a previous Globe article that found lenders intimidating their customers with threats of foreclosure or add additional fees even after there was a modification to the loan.
A loan modification works to keep the homeowner in their house. By lowering the interest rates, principle, or both, loan modifications have been the answer for many resident's needs. However, with this new practice, lenders have taken advantage of their consumers. In a class-action lawsuit, Bank of America was held responsible for using unlawful tactics against their customers.
Hopefully, this will serve to clear the air and provide better customer service. Coakley pointed out that unless the mortgage issues are sorted out, our economy will be hindered. Much of the issue is attributed to incorrect paperwork and technical glitches. It is important that you keep a copy of your paperwork including mortgage statements. This is the best way to avoid any paperwork confusion between yourself and your lender.
You can read the full Globe article here.