D.C. joins national probe into foreclosures

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Capital Land,Liz Farmer

D.C. Attorney General Peter Nickles said Wednesday that the Office of the Attorney General is investigating the accuracy of the foreclosure notices filed for residences in the District. The announcement comes on the heels of a statement by the director of the National State Attorneys General Program calling for stricter mortgage oversight by states.

The District is part of a national investigation into unfair foreclosure practices that may have illegally evicted families from their homes. The 50 states and D.C. are combing through foreclosure filings and documents to see if any state laws have been broken by mortgage servicers in the rush to kick borrowers out of their homes.

The District is investigating whether the standard foreclosure notices used in the District may be deceptive — in other words, where the note holder’s mortgage interests have not been disclosed. Deceptive notices would violate the District’s consumer protection law.

“We are taking a close look at the special features of the District’s residential foreclosure process, especially since residential foreclosures in the District are not subject to regular judicial oversight,” Nickles said. “It is important to the District’s homeowners and real estate market that any problems be identified and fixed quickly.”

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