Bank of America Acknowledges Foreclosure Errors

October 25, 2010 No Comments »

bofa

Bank of America has acknowledged some errors in its foreclosure processes, according to a report in the WSJ.

The Charlotte, North Carolina-based bank and mortgage lender already discovered flaws in 10 of the first 25 loan files analyzed as part of a massive investigation started last Monday.

The errors include a lack of signatures, improper paperwork, missing documentation, and information about properties and payments not matching up.

But the mistakes are supposedly rather innocuous, including misspelled names and incorrect addresses, nothing that actually led to “wrongful foreclosures.”

I guess that’s the main issue here – did the use of robosigners and other corner-cutting methods actually cause borrowers to lose their homes?

Or was it just a way for banks to save time and money? Not that either are acceptable.

The whole issue stems from employees who signed off on hundreds or thousands of foreclosure documents in a short amount of time, essentially proving they didn’t do their due diligence or follow protocol.

A couple weeks ago, Bank of America halted foreclosures nationwide amid these allegations.

However, the company resumed the process a week later after an initial assessment found the basis for their foreclosure decisions was accurate.

Regardless of whether the foreclosures were inevitable or not, the big question remains if banks should be held accountable…

Last month, bank repossessions surpassed 100,000 for the first time ever.

Leave A Response