A look inside the foreclosure factory

Thanks to Connecticut Attorney General Richard Blumenthal it looks like we are about to get a glimpse at the inner workings of the foreclosure business.

And if preliminary indications are anything, it is not likely to be a pleasant view.

Blumenthal’s office is investigating how the majority of foreclosures in the state are assigned to a small group of law firms and how some consumers did not receive the correct foreclosure notices.

Oops.

The Connecticut AG is looking at how Fannie Mae, Freddie Mac and Lender Processing Services select law firms to handle the nasty but highly lucrative work of foreclosing on troubled homeowners.

Among the complaints Blumenthal says he is investigating include allegations of kickbacks, forged papers, failure to deliver foreclosure notices to homeowners, and kickbacks.

Sounds like some potentially explosive stuff. And it’s also the kind of thing that could very easily be happening in other states across the country, including our own, oh-so-morally-pristine Massachusetts.

Sounds like some fertile territory for someone to start digging in.