There is a 50 statewide investigation going on to see how wide spread the faulty documents to foreclose on homeowners has spanned.  Recently some states have filed civil lawsuits against some of the top lenders in the country.  Ohio state attorney general has filed a lawsuit against Ally's financial and their GMAC mortgage division.  17 other states will possibly file lawsuits as the investigation goes on and they continue to find fault within the lenders foreclosure practices.

The committee for the 50 state investigations is not seeking across the board moratorium on all foreclosures; however, they are seeking to correct any issues with homes that were taken illegal by false documents.  The lenders cannot violate state law just to stratify the overwhelming volume of foreclosures and to try to expedite the process.

Something the states are looking at is how to improve the loan modification process.  Home owner complaints about the loan modification program are the following:

-          Higher modified mortgage payments

-          Foreclosed on during the loan modification process

-          No amount change in mortgage payment

In some cases state Attorney General's in Maine and Settle have actually seen false signatures on several documents with different signatures but the same name being signed.  This is obviously a serious problem which needs to be addressed.

Some of the lenders being questioned about their foreclosure procedures are:

-          Bank of America

-          Ally (GMAC mortgage division)

-          JP Morgan and Chase

-          Litton Loan Servicing

-          PNC (National City)

Conversations have started between some of the state attorney general offices and that is promising that lenders are willing to discuss how to remedy the problem.  However, PNC and GMAC have declined to any open lines of communication for the time being.