Texas on Monday asked 27 residential servicers doing business in the state to voluntarily suspend foreclosures and to halt sales of properties already foreclosed upon, according to a published report.
The Houston Chronicle said Texas Attorney General Greg Abbott launched an investigation into foreclosures last month over nationwide concerns on how foreclosures are processed, including so-called "robo-signing" practices by servicers and their vendors.
Servicers sent notices by the AG's office include the nation's largest such as Bank of America, and JPMorgan Chase. However, a complete list was unavailable at press time.
The state asked servicers to reply by Oct. 15. Ironically, Texas has one of the healthiest housing markets in the nation, thanks to its energy-related industries.
