Md. governor, attorney general, congressman call for voluntary foreclosure freeze
Maryland Gov. Martin O'Malley, left, and New York City Mayor Michael Bloomberg, shake hands after Bloomberg announced his endorsement for O'Malley's re-election bid last week in Bethesda, Md.
(Photo Credit: AP Photo/Jacquelyn Martin)
Maryland Gov. Martin O'Malley (D) has joined the state's attorney general and Rep. Elijah E. Cummings (D) to call on mortgage servicers to voluntarily halt foreclosure proceedings.
O'Malley said in statement that companies that improperly prepared affidavits in foreclosure cases are "trampling laws that were designed specifically to protect homeowners in default."
Maryland is not one of the 23 states that require a court order for a foreclosure and therefore was not included in the moratoriums announced by Bank of America, J.P. Morgan Chase and Ally Financial.
Here's the full letter.
In a letter send late Monday that was addressed to the three banks plus Wells Fargo, PNC Bank, CitiMortgage and OneWest Bank, the public officials said they are "seriously concerned that similar problems likely exist in our state."
O'Malley said he requested the suspension of foreclosures while the state explores the "legal avenues available."
A spokesman for the governor's office said Tuesday that "Maryland's situation may very well be that the option to order a temporary halt to foreclosures does not exist, and therefore we'll continue to pursue voluntary partnerships with loan servicers."
Ally Financial declined to comment about specific states but said the company takes "this matter very seriously and are acting with urgency to resolve the issue."
Ariana Eunjung Cha
| October 5, 2010; 11:22 AM ET
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