Tuesday, August 23, 2011

Rhode Island Federal Court Freezes Dozens Of Foreclosure Cases In Effort To 'Persuade' Banksters To Sit, Negotiate Payment Workouts w/ Homeowners

In Providence, Rhode Island, WPRI-TV Channel 12 reports:

  • Rhode Island's new federal judge makes a decision that could affect dozens of Rhode Islanders facing foreclosure. Judge John McConnell, Junior has ordered the bulk of mortgage foreclosure cases in before Rhode Island's U.S. District Court to be put on hold, and for banks to try and negotiate with homeowners. 63 foreclosure cases in Rhode Island are affected.


  • "It stops the banks and the services in their tracks," said George Babcock, a Pawtucket attorney who is handling the majority of the foreclosure cases. "It gives them opportunity to sit with the magistrate," Babcock said, "and with the bank or servicer to try and work out a reasonable deal." The idea Babcock says is to keep Rhode Islanders in their homes.

For the story, see Judge puts RI foreclosure cases on hold (Banks ordered to negotiate with homeowners).

See also, The Providence Journal: Judge McConnell orders banks, struggling borrowers to talk it out:

  • In the past few months, dozens of cases calling into question the chain of ownership on mortgages and whether various companies have the right to foreclose on a homeowner have been transferred to U.S. District Court from state court.

  • At Chief U.S. District Court Judge Mary M. Lisi’s request, all the federal court cases will be handled by McConnell in conjunction with U.S. Magistrate Judge Lincoln D. Almond.

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