Washington AG says some trustees may break foreclosure laws
Washington Attorney General Rob McKenna said a handful of trustees may be breaking the law by not having offices up and running in the state.
McKenna sent a letter to a number of mortgage trustee firms reminding them the Washington Deed of Trust statute requires an office presence in the state, so homeowners have a place to deliver last-minute payments to stave off foreclosure.
"Having an agent in Washington State isn't sufficient; the law also requires that the trustee itself maintain an office with a phone where homeowners can go to resolve their foreclosure issues," McKenna said in a written statement.
The AG's office discovered the possible violations while investigating unlawful foreclosures across the Northwest state.
"Washington law requires that foreclosure trustees maintain actual offices in our state and local phone numbers for this reason," McKenna said. "But our investigation shows that some of the largest trustees are not in compliance and borrowers who have a legitimate reason to stop a foreclosure are having trouble reaching trustees."
About 52 Trustees received letters from McKenna back in October, announcing the AG's concerns about document handling, conflicts-of-interest and faulty chains of title. Attorneys at the Washington Attorney General's office are now reviewing documents tied to that probe.
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