A suspension of Massachusetts home closures have been called upon yesterday by Attorney General Martha Coakley.

She issued letters to four of the major lenders where she stated that she needed proof that each of the lenders are reviewing the documentation on foreclosure for homeowners ,meticulously as per the requirement set by the state law.

Coakley clearly stated that she wanted all the major lenders like JPMorgan Chase & Co, Wells Fargo, GMAC Mortgage, a part of Ally Financial and Bank of America to put a halt on foreclosures and sales of properties that have been foreclosed.

She gave the order following revelations that in other states many lenders without even verifying or reading documents had signed off foreclosures for thousands of homeowners.

Coakley, in an interview stated the action taken by lenders as outrageous and stated if lenders act in such a manner then consumers have to suffer as they won’t get enough time or chance for modifying the loan or do anything to avoid the foreclosure.

No one from Bank of America or Wells and Fargo did not call back to talk regarding this matter. JP Morgan Chase’s spokesman denied commenting on the same. Even GMAC/Ally declined to say anything in this matter.

Jim Olecki, spokesperson of GMAC/ Ally stated that his company had stated earlier that they are confident that processing error did not account for any foreclosure done improperly. He further added that his firm has taken the matter very seriously and would act urgently to sort out the issue.

Many big banks have suspended foreclosures in twenty three of the states that asks for judicial review of foreclosures after things came out in the open that employees signed and notarized foreclosures without even reviewing or reading them. The banks operating in states that do not require judicial review of foreclosures are carrying on with it.