Banks in negotiations over foreclosure pact

6/23/2011

Banks negotiating with state attorneys general over foreclosure practices would be sued if a settlement isn’t reached, two of the state officials leading the talks said.

Illinois Attorney General Lisa Madigan and North Carolina Attorney General Roy Cooper threatened litigation if settlement talks with largest mortgage servicers, including Bank of America Corp. and JPMorgan Chase & Co., break down. The deadline has been pushed back a month, according to a person with knowledge of the talks.

State and federal officials seek to set standards for the way the banks service loans and conduct foreclosures. They also want monetary relief for homeowners.