Wednesday, October 13, 2010

Fight against foreclosures gaining momentum

Michigan, Kansas, Massachusetts cases set precedents

By Diane Bukowski
Michigan Citizen

DETROIT — Over 40 Wayne County homeowners have filed a $10 million class action lawsuit that could invalidate tens of thousands of mortgage foreclosure sales executed while Warren Evans was Sheriff.

“In addition to the technicalities listed in the lawsuit, such as the fact that Evans’ subordinates were not authorized to sign deeds of sale, we are contending that sheriff’s auctions were not even held in many cases,” said Cross. “The sales should be null and void, and the original property owners should still own their homes under the law.”

In January 2009, Sheriff Evans made headlines when he imposed a moratorium on foreclosures in Wayne County. He asserted that the Troubled Asset Relief Program, known as TARP, allowed sheriff’s departments to stop foreclosure sales.

The lawsuit charges fraud, taking without just compensation, and civil conspiracy, among other allegations. Under terms of the Michigan Consumers’ Act, says Nicoletti, property owners may be awarded compensatory damages, including costs of loss of the home’s contents and subsequent vandalism of the homes. The defendants are Evans, the Wayne County Sheriff’s Department, Board of Commissioners, and Wayne County itself. FULL STORY

No comments: