Countrywide Postpones 103 Foreclosure Sales In Response To Suit Accusing It Of Foreclosing On Homeowners Current On House Payments

The Wall Street Journal reports:

• Countrywide Financial Corp. voluntarily postponed 103 foreclosure sales scheduled for yesterday in Texas in connection with a private lawsuit that accuses it of trying to foreclose on homeowners who emerged from bankruptcy and were current on their mortgages. That allegation, which the company denies, is also one of the issues raised by a federal bankruptcy watchdog in suits it filed against the company last week. [...] The U.S. Trustee Program last week sued the company in three states for "bad-faith conduct" and "abuse" of the courts. In Florida, the U.S. trustee alleged that Countrywide tried to foreclose on a home after the borrowers had eliminated the company's mortgage through a bankruptcy proceeding four years earlier.

For more, see Countrywide Delays Foreclosure Sales (subscription may be required; if no subscription, try here, then click link for story, then "refresh" browser if needed).

See also, Countrywide Is Sued Again by U.S. Overseer.

• [U.S. Trustee Donald] Walton said that after a judge ruled Countrywide did not have a valid lien, it nonetheless pursued claims for nearly four years, including an attempt to foreclose, causing unnecessary delay and expense. Countrywide voluntarily dismissed its foreclosure complaint in October, the trustee said. “Countrywide’s failure to ensure the accuracy of its claims and pleadings has resulted in an abuse of the bankruptcy process and has prejudiced and will continue to prejudice, parties in interest in the bankruptcy cases in which Countrywide participates,” Mr. Walton said.

For the Florida U.S. Trustee's lawsuit against Countrywide, see Walton v. Countrywide Home Loans Inc.

Go here, Go here and Go here for more on recent Countrywide problems with consumers.