Swanson calls for suspension of foreclosuresby Dan Olson, Minnesota Public Radio
St. Paul, Minn. — Minnesota Attorney General Lori Swanson says Bank of America's decision to temporarily suspend foreclosures in all 50 states is a positive step.
Swanson is asking more than a dozen lenders to suspend foreclosures while the review is underway. So far, Bank of America is the only lender to suspend foreclosures while it reviews them.
The concern is that lenders have not checked foreclosure documents for accuracy.
"With a little due diligence and little slowing down of the process, we can make sure people are getting this right before they foreclose on these homes," said Swanson.
Swanson says a temporary halt in foreclosures would allow time for those being foreclosed on, and those buying foreclosed properties -- third parties -- to know if the process was legal.
Swanson and attorneys general in 40 states are starting an investigation into mortgage foreclosure practices.
Wells Fargo and GMAC have joined J.P. Morgan Chase in saying they will review -- but not suspend -- mortgage foreclosures in all 50 states.
The White House said Tuesday it does not support a foreclosure moratorium because of the unintended consequences it might create.