October 13th, 2010
12:11 PM ET

Alabama is 50th state to join foreclosure probe

[Update 1:32 p.m.] Alabama has joined the other 49 states in a joint investigation of foreclosure practices by major lenders.

Alabama was not included in the original coalition of 49 states, but the office of Attorney General Troy King indicated Tuesday afternoon that his state would end its holdout and join the investigation.

[Original post] Forty-nine state attorneys general announced a coordinated probe Wednesday into improper foreclosures performed by the nation's largest loan servicers, but stopped short of calling for a freeze on all foreclosures.

The group will work to put an immediate stop to improper mortgage foreclosure practices, as well as review past and present practices by loan servicers and potential remedies.

The inquiry will be led by Iowa Attorney General Tom Miller.

"This group has the backing of nearly every state in the nation to get to the bottom of this foreclosure mess, and we plan to work together as thoroughly and expeditiously as possible," said Miller.

Alabama is the only state not participating in the investigation.

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Filed under: Business • Finance • U.S.
soundoff (14 Responses)
  1. ralph monkman

    Hello from Canada. Does ANYONE know what they are doing down there?

    October 13, 2010 at 12:48 pm | Report abuse | Reply
    • Nika

      I used to think so, but it doesn't really appear that way does it?

      October 13, 2010 at 1:50 pm | Report abuse |
  2. La Piovra

    Alabama would be the holdout. I hope this situation shelby amended soon.

    October 13, 2010 at 1:26 pm | Report abuse | Reply
  3. trenton

    suprised! thought NJ would be the holdout. corrupt Christie

    October 13, 2010 at 2:03 pm | Report abuse | Reply
  4. Scott

    Alabama is the last holdout on almost anything. It's a tossup as to which is the worst state in the U.S.: Alabama or Mississippi

    October 13, 2010 at 7:08 pm | Report abuse | Reply
  5. phil

    don't even think about using that probe on my foreclosure dag-nabbit . what these new rascals in Alabama call for is confusion ! Alabama is not likely to enjoy Coca -Cola with their absurd theories of the rights of man. .( seeing if anyone is actually reading other peoples posts, or just posting right away like i just did.

    October 13, 2010 at 11:39 pm | Report abuse | Reply
  6. phil

    Never mind

    October 13, 2010 at 11:42 pm | Report abuse | Reply
  7. Jim Brieske

    I find this to be absolutely absurd. The U.S. Congress just finished passing Obamacare and numerous other pieces of legislation WITHOUT READING THEM.
    So please spare me any justification that you can create in your small minds and drop the foreclosure issue!
    jim

    October 14, 2010 at 12:08 am | Report abuse | Reply
  8. whitekong78

    Hello Canada! You're about to gain a citizen. If anyone believes politicians are going to faithfully investigate the rich people that finance their campaigns then I've got some swamp land in Florida to sell you.

    October 14, 2010 at 12:28 am | Report abuse | Reply
  9. STEPHEN POSEY

    WHY IS IT NO ONE HAS ASKED THE QUESTION TO BANKS AND THE GOVERNMENT AS TO WHY THERE IS NO PROGRAM TO JUST REDUCE THE INTEREST RATE ON A EXISTING HOME LOAN TO CURRENT INTEREST RATES AND KEEP THE SAME PAYBACK PERIOD. ALL THAT IS AVAIABLE IS A FIXED 15 YEAR OR A 30 YEAR LOAN AT LOWER INTEREST RATES. IN EITHER CASE NEITHER IS BENEFICIAL TO A HOME OWNER THAT HAS BETWEEN 19 TO 26 YEARS TO PAY ON THEIR HOMES. IF A PERSON LOOKS AT A 15 YEAR LOAN YOU PAY LESS INTEREST BUT A MUCH HIGHER MONTHLY NOTE WHICH IS NOT BENEFICAL IN THIS ECONOMY. ON A 30 YEAR LOAN YOU PAY A LESSER MONTHLY NOTE BUT LONG TERM YOU PAY MORE FOR THE LOAN. IF A PROGRAM FOR MODIFIED INTEREST TO EXISTING HOME LOANS WAS APPLIED THIS WOULD GO A LONG WAY TO REDUCE FORECLOSURES AND HELP HOME OWNERS OUT IN THESE TOUGH ECONOMIC TIMES. BUT IN MY OPINION THIS WILL NEVER HAPPEN BECAUSE OF CORP GREED AND PROFIT MARGINS.

    October 14, 2010 at 11:24 am | Report abuse | Reply
  10. tonya

    I think this is a blessing. We have been fighting with Midland for over a year. They continuously lose our paperwork and never return phone calls. Those are just the minor things. All of a sudden they called today to make a deal. Really? I wonder why. . .If the government can get it together then we may be able to save our homes and our nation. Thank you God.

    October 14, 2010 at 2:36 pm | Report abuse | Reply
  11. M~

    This has been the biggest scam by these lenders EVER... everyone has gone through the very same scenario all over the country. I have emailed numerous media as well as the White House to ask what the criteria was for lenders to receive the modification funds from the government, and what the government did to follow up on the plan. I was informed that the lenders not only got money from this plan (this is taxpayers money) but they also got money for houses that were foreclosed on as a loss. That industry is nothing but a bunch of crooks. I mean it was a crook who started Fanny Mae and Freddy Mac!!!

    October 16, 2010 at 8:32 am | Report abuse | Reply
  12. trying2save

    Go get these banks.

    ..they have drawn enough and more than enough blood from the consumers and and the taxpayer. It is time they are made to pay for their utterly greedy decisions.

    October 20, 2010 at 1:47 pm | Report abuse | Reply
  13. Jon

    Alabama is always the holdout. It is the worst state ever. We have a horrible education system, were number three in the country for murder rate, and we have the highest poverty rate. I've lived in Mobile, Huntsville, Madison, Athens, Gulf Shores and Birmingham, so I know a thing or two about Alabama. Mobile is definitely the most dangerous city. Gulf Shores is the most racist city. Madison is the prettiest and most educated city. Huntsville is a poor dangerous city along with Birmingham. Athens just flat out sucks.

    November 5, 2010 at 1:13 am | Report abuse | Reply

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