Alleged foreclosure fraud at some of the country's largest banks has brought the already struggling American housing market to a screeching halt, as lenders freeze foreclosures. The allegations involve mortgage loans held by JP MorganChase, GMAC and Bank of America. It is estimated that tens of thousands of foreclosures were approved without proper review.

The office of the New York Attorney General ha s filed a complaint in State Supreme Court seeking justice on behalf of thousands of mortgage holders duped by two companies that promised to save them from foreclosure. Instead, according to a report in The New York Times, Mr. Pane's companies illegally required mortgage holders to pay an up-front fee of at least 1 percent of the total amount owed, and then vanished.

MONTGOMERY, ALA. - (February 6, 2009)  Beasley Allen has re-filed the lawsuit on behalf of the City of Birmingham against various sub-prime lenders including CitiGroup, Inc., Citi Mortgage, Inc., Citi Financial, Inc., Argent Mortgage Company, LLC, and Countrywide. The suit contends that the companies have violated the Fair Housing Act (FHA) by participating in predatory lending practices. The lawsuit also alleges the lenders violated other state laws and have profited by their wrongdoing.

Beasley Allen, along with Dagney Johnson-Walker, a Birmingham lawyer, filed suit in November on behalf of the City of Birmingham against various sub-prime lenders including Wells Fargo, Regions Bank and Countrywide. The suit contends that the companies have violated the Fair Housing Act (FHA) by participating in predatory lending practices. The lawsuit also alleges the lenders violated other state laws and have profited by their wrongdoing.