San Diego is suing Bank of America to stop foreclosures. Recently the bank has acquired Countrywide, a mortgage giant. So the proceedings are against the bank targeting Countrywide. The suit aims to prevent mortgage lenders from undertaking foreclosure operations in the city, which is going to be turned into a ‘Foreclosure Sanctuary’.

On behalf of Sand Diego City attorney Michael Aguirre is planning to similarly sue Washington Mutual, Wells Fargo and Wachovia to pressurize the lenders to seriously negotiate with the borrowers who are at risk from foreclosures.

Southern California, especially San Diego has been seeing steep hikes in foreclosure numbers because many were made to contract sub-prime mortgages few years back. This year at a rough count already 20,000 houses in San Diego county alone, having a population of 2.9 million, have been gobbled up by foreclosures. The gloomy prediction of experts is that before the year dies down the number will increase to 40,000.

Shirley Norton of Bank of America was cryptic in her comment that they have not seen the lawsuit and could not make any remarks. In a statement the bank said that it had been scrutinizing the details of the previous activities of Countrywide since taking it over earlier. The combined entity will no longer deal with sub-prime mortgages. The statement further added that both the units are working hard to be ‘recognized as a leader in responsible lending practices.’

The lawsuit was filed in San Diego County Superior Court. Aguirre made this announcement to a news meet in front of a fire ravaged abandoned house in neighbourhood riddled with similar eyesores. The house has now been repossessed by Countrywide. Till December the owner was a Vietnam War veteran – Manuel Coriz. Manuel has now holed in somewhere nearby. The house is now boarded up and the front portion is charred debris. Tall weeds are choking the yard. The fire was started by vandals who slinked in when Coriz moved out according to reports from the police department.

Aguirres lawsuit has been brought in the name of the residents of California naming four Countrywide officers some current and others former. One of them is Angelo Mozilo who was formerly chief executive. It has been alleged that they personally benefited from selling shares knowing that the company rules did not sanction sub-prime mortgages. In clear tones Aguirre said that the executives of Countrywide ‘engaged in a massive fraud.”

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