Attorneys General in Connecticut, Illinois and Ohio have signaled their interest in looking into how large mortgage holders and servicers have been managing delinquent mortgages through foreclosure or modification.

The officials took steps after court filings and media accounts reported that both Ally Bank, formerly GMAC, and JPMorgan Chase both appeared to have skipped steps in the foreclosure process.

"I am demanding a freeze in all GMAC-Ally foreclosure actions to forestall horrendous, illegal harm against homeowners," Connecticut Attorney General Richard Blumenthal said. "The GMAC-Ally foreclosure steamroller should be stopped so the company can be held accountable. My office has already confirmed that some defective documents were filed in Connecticut. The bank's apparent failure to follow basic legal procedure-a potential fraud on the court-is appalling and unacceptable. Our investigation will enable strong legal action against GMAC-Ally, if warranted by the facts and the law. I will fight to assure that banks comply with clear legal requirements that protect homeowners from unfair foreclosures of their homes."

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