Take Action! Demand a Freeze on Foreclosures!

Foreclosure sign

In recent weeks, it has been revealed that the nation’s largest banks have been fraudulently foreclosing on tens, if not hundreds of thousands of families. The big banks financed the predatory mortgage firms that caused the crisis in the first place, an now they are foreclosing on families, the unemployed, the sick, the elderly and even veterans using slipshod foreclosure mills to do their dirty work.

If you are as infuriated as we are call your State Attorney Generals Office today! Click here for a complete list of phone numbers.

Respectfully urge your Attorney General to protect the people and to “publicly call for an immediate moratorium on all foreclosures and to begin an investigation into banks’ foreclosure procedures.” Officials in Texas, Florida, Massachusetts, Michigan, North Carolina, California, Ohio and many other states are now calling for statewide moratoriums until an investigation can be conducted.

Fraud on the Front End, Fraud on the Back End

This entire crisis was preceded with "an epidemic of mortgage fraud," according to the FBI. The Wall Street Journal documented that 60% of the families given subprime loans had credit scores that qualified them for more consumer-friendly loans. Numerous lawsuits and studies document how blacks and Latinos were targeted by lenders for risky subprime loans in a violation of their civil rights. So it is no surprise that the fraud continues with false notarizations and "robo-signing" of critical legal documents.

On Tuesday, 49 state Attorneys General announced a joint investigation, but not a freeze, on foreclosures until the investigation is complete. The Attorneys General need to be pushed to do more, and President Obama must get busy as well or 11 million families are at risk of foreclosure.

President Obama Must Do More

The bottom line is that families facing foreclosure do not need temporary fixes or temporary financial aid. They do need a principle write-down making their homes more affordable. The government-owned entities Fannie Mae and Freddie Mac should take the lead serving as models for how to prevent unnecessary foreclosures by securing a principal write-down and making sure that all legal requirements are being met.

Yet rather than using this moment to call for a thorough review to make sure no family is being kicked to the curb unjustly, and to reach for real solutions that will help unemployed Americans facing the threat of losing their homes, Obama administration officials appear to be siding with the banks. Top White House political adviser David Axelrod, went on the Sunday news shows this past weekend to opine: "I'm not sure about a national moratorium because there are in fact valid foreclosures that probably should go forward."

If you haven’t been following the story, visit the website of Campaign for America's Future, where Zach Carter has been doing an excellent job tracking every move of the Banksters related to this fraud and more.

The big banks got us into this crisis by cutting corners, and these new fraud revelations show that they are continuing to act in an illegal and reckless manner that is prolonging the suffering and financial crisis of millions of American families facing hard times.

Mary Bottari

Mary Bottari is a reporter for the Center for Media and Democracy (CMD). She helped launch CMD's award-winning ALEC Exposed investigation and is a two-time recipient of the Sidney Prize for public interest journalism from the Sidney Hillman Foundation.


Though descriptively, if not definitionally, a Progressive, I believe the Obama administration is right in investigating first to see the scope and depth of the issue of incorrectly processed disclosures. A blanket freeze on foreclosure processing makes good frustration-expression, but, in reality, is something like asking for a delay in the sunset to give you time to find your camera. Disrupting the present restructuring of the housing market would impede rebuilding the economy and finish by costing a great deal of money that ordinary people would end up paying out. Preliminary evidence at the Justice Dept suggests the over-whelming proportion of allegedly fraudulent foreclosures could not be circumvented by re-examining the mis-administered documents. An investigation should find those guilty of fraud and prosecute them; which can be done without a freeze. The present SNAFU should not be seen as a political opportunity to force lenders to absolve all borrowers faced with foreclosure of taking responsibility for making an imprudent investment in a home.

I am currently going through foreclosure and have come across an interesting piece of information that could possibly create the flood gates to burst open against the banking industry. I have just read through the information and will be jumping in to see if it is an option for myself. https://docs.google.com/fileview?id=0B-CjH4UcgwuWMmYxMWQyYjEtM2Y0Ni00NzJjLTliYWEtYmQ2YWJkOTIwYjE0&hl=en&authkey=CJ6_wIEG

I live in MA and I sent a complaint to Martha Coakly the year after she was elected. Her office did nothing but allow the fraud to continue I haven't even contacted her about our situation now but I want to expose what I had sent her after the Division of Banks acted in bad faith (you will not believe what they did) and the evidence and proof of over $100,000 we made in payments and were never applied and they filed foreclosure is unbelievable. Our story is unlike any you have heard there are 2 and it will blow your mind. I need someone from the media to expose this.