Foreclosure complaints continue to PA attorney general’s office

A steady number of calls regarding foreclosures have been coming into the PA Attorney General’s office since the announcement that Pennsylvania has joined a multi-state working group probing questionable mortgage foreclosure activity.

“Not a day goes by that we don’t get a call about foreclosures,” said Nils Frederiksen, spokesperson for the Attorney General’s office. He said the calls have been more frequent since the cooperation among the state attorneys general offices was announced.

Attorneys General from all 50 states, along with banking and mortgage regulators from 37 states, have agreed to coordinate their investigations into mortgage-related issues that the states share in common.

“Given the potential size and scope of this issue, it is important that we share information and work quickly to address possible problems,” PA Attorney General Tom Corbett said.

The multi-state effort is in addition to an ongoing investigation by the Attorney General’s Bureau of Consumer Protection into potentially improper foreclosures in Pennsylvania.

The Philadelphia Inquirer reported last week that several banks have announced a foreclosure moratorium in Pennsylvania. While Bank of America had placed a moratorium on foreclosures, it announced this week that it will continue to follow through on the foreclosures. Other financial institutions reviewing their foreclosure procedures include JPMorgan Chase & Co. and PNC.

“Rules and regulations vary from state to state but much of the foreclosure information is common to us all. Rather than running independent reviews, we believe we’ll be able to move much faster and efficiently if we work together,” Frederiksen said.  “Our goal is to find the facts and determine whether any violations have occurred in Pennsylvania.”

He noted that the Commonwealth differs from some states in that Pennsylvania requires judicial review of foreclosure proceedings. States without judicial review are now working to enact it for the foreclosure process.

Frederiksen said that if foreclosure procedures haven’t been properly followed, the harm could have an impact on homebuyers, sellers and the entire real estate industry.  “Our goal is to ultimately protect the consumer,” he added.

Homeowners who believe they have been victimized or REALTORS® who may be aware of foreclosure issues can access online complaint forms on the Attorney General’s website or they can call the Attorney General’s toll-free Consumer Protection Hotline at 800-441-2555 (Monday-Friday, from 8:30 a.m. to 4:30 p.m.).

Homeowners who have received foreclosure notices should contact the Pennsylvania Housing Finance Agency (PHFA) for information about emergency mortgage assistance, foreclosure mitigation counseling and other services that may be available.  Consumers can call PHFA directly at 800-822-1174 or review detailed information about mortgage and foreclosure assistance services on the PHFA website.