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New Jersey Continues To Fight Banks Over Foreclosures

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Say what you will about Jersey, the state has got cojones.

While many other states have sat idly by while their citizens’ homes were foreclosed on, sometimes erroneously, New Jersey recently ordered six major banks, including Bank of America, Citigroup, JPMorgan, and Wells Fargo, to explain why they should be allowed to continue their foreclosure activities. If they failed to respond adequately, the state could suspend foreclosures and appoint a “special master” to investigate.

The banks aren’t buying it, and have argued that the court order violates both the New Jersey and US Constitution.

But Abigail Field, over at Daily Finance, isn’t buying that, either.

However strong these challenges to a potential moratorium and special master may be, the irony of banks arguing that halting foreclosures would break court rules and violate their due process rights is richer than New York cheesecake. After all, the banks' actions in the foreclosure process have systematically involved documents that break court rules and violate homeowners' due process rights, which is what led New Jersey to act in the first place.

Field goes on to explore the case in detail, and it makes for a great read.  Check it.

But a little advice for the banks—never, never, never get involved in a fight with some from Jersey.

Case in point.

POSITION:  No positions in stocks mentioned.