Connecticut Attorney General Richard Blumenthal has asked the state Judicial Department to freeze all home foreclosures for 60 days because of defective document filings and institute measures to assure the integrity of future filings.
Blumenthal made the request after a second bank, JP Morgan Chase, acknowledged filing defective foreclosure documents. Like GMAC/Ally, Chase admitted that employees have signed affidavits without verifying the information in them.
Blumenthal is investigating GMAC/Ally and JP Morgan, as well as whether other banks may have engaged in similar practices.
Submitting defective documents is a possible fraud upon the court, according to Blumenthal's office.
‘This freeze should stop a foreclosure steamroller based on defective documents and enable effective remedies," Blumenthal says. "The actions of GMAC/Ally and JP Morgan are inexcusable, a possible fraud on the court undermining the integrity of the legal process and consumers' ability to fight foreclosures.’
Blumenthal is calling on the Connecticut Justice Department to require signers to state the basis for verifying information in affidavits.