Blumenthal seeks review of foreclosures

WTNH TV

Mark Davis

Updated: Jul 11, 2011 6:27 PM

Connecticut Sen. Richard Blumenthal is calling on federal and state officials to look into lapses in how home foreclosures are being conducted. 

It is estimated that one out of every 119 homes in Connecticut is in the foreclosure process -- that's over 7,200 homes.

Janet Driscoll and her husband both lost their jobs about two years ago and in order to save the home they'd lived in for a decade, applied for a mortgage modification to lower the approximately $1,700 a month payments. With three kids to educate, they needed some help for a while. It turned into a twenty-four month nightmare with their mortgage holder, The Bank of America. They started getting bills for stuff they had already paid, like their homeowners insurance.

"All of a sudden taxes, escrow for taxes were showing up," Driscoll said. "We had paid our 2010 taxes and they included that they were paying them, so that almost tripled our mortgage."

And they got billed for inspections that never happened. They struggled through and eventually withdrew their application because the increased charges could have forced them into foreclosure.

"Robo signing is just the tip of the iceberg. There are a series of abuses and malfunctions in this process that make it truly broken," Sen. Blumenthal said.

Blumenthal announced today that the Senate Judiciary Committee plans to begin hearings on the banks foot dragging on mortgage modifications. He says the banks have an incentive to prolong the mortgage modification process as long as possible because the longer it goes the more fees they can charge.

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