Wednesday, July 23, 2008

Foreclosure Sanctuary

Oh this is going to be good. My guess is that Messr. Aguirre is out for a shakedown of the banks and looking for some side deals or campaign contributions for a run at statewide office. Here's hoping so, because if he is serious and manages to pull it off, welcome to chaos when it comes to mortgage markets, to property transactions, and to property title insurance - just to scratch the surface of blowback effects this could cause:

San Diego sues Bank of America over foreclosures
Reporting by Marty Graham in San Diego; Writing by Jim Christie; editing by Mark Porter and Carol Bishopric
SAN DIEGO (Reuters) - San Diego City Attorney Michael Aguirre said on Wednesday he had filed a lawsuit against Bank of America Corp and its Countrywide unit to prevent the mortgage lenders from foreclosing on homes in his city, which he aims to make a "foreclosure sanctuary."

Aguirre said he plans to file similar lawsuits against Washington Mutual Inc, Wells Fargo & Co and Wachovia Corp in an effort to make the lenders negotiate with mortgage borrowers facing foreclosure.

"We would like to see San Diego become a foreclosure sanctuary," Aguirre said. "We haven't seen the lawsuit and can't comment," said Bank of America spokeswoman Shirley Norton.

Talk about a hot meme that could spread like wildfire if we do see a continuing descent into severe recession. This could be the seed of something huge. Might want to keep an eye on this lawsuit.

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