In Connecticut, Attorney General Richard Blumenthal ordered Oct. 2 that a freeze on all foreclosures by all banks for 60 days, according to the Washington Post.
However, Connecticut is far from the only one taking action on foreclosures, as California has expanded the moratorium on foreclosures it announced regarding Ally Financial foreclosures; it now includes those by J.P. Morgan Chase. California Attorney General Jerry Brownopening criticizing the companies' foreclosure-review processordered J.P. Morgan to prove its actions are legal before it continues foreclosures.
Colorado and Illinois have also stopped foreclosures by Ally, and several other states have started investigating the issue. However, Connecticut is the first to institute an industry-wide ban.
Ally had already voluntarily suspended evictions and resales of homes in 23 states that require court orders for foreclosures. J.P. Morgan suspended all foreclosures in the same 23 states.