The Washington State Attorney General's Office is suing a company it says allowed thousands of Washington State homeowners to be foreclosed on. (AP Photo)

The Washington State Attorney General’s Office is suing a company it says allowed thousands of Washington State homeowners to be foreclosed on.

Attorney General Rob McKenna said ReconTrust, a subsidiary of Bank of America and foreclosure trustee,
“systematically” violated state law governing foreclosures in “thousands and thousands” of cases statewide.

“The actions of this company resulted in some homeowners losing their homes who would have had a chance to stay in their homes,” McKenna said, adding that homeowners were sometimes denied modified loans that would have made it financially possible to avoid foreclosure.

McKenna’s office is suing for penalties that will compensate victims. They’ve also asked for a permanent injunction against the illegal activities.