Bank of America Stops Foreclosures in All 50 States

October 8, 2010 No Comments »

bank of america

Bank of America announced today that foreclosure sales have been halted in all 50 states amid allegations foreclosure proceedings were done hastily or improperly nationwide.

The issue focuses on so-called “robosigners,” otherwise known as employees or agents 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.

“Bank of America has extended our review of foreclosure documents to all fifty states,” the company said in a release. “We will stop foreclosure sales until our assessment has been satisfactorily completed.”

“Our ongoing assessment shows the basis for our past foreclosure decisions is accurate.   We continue to serve the interests of our customers, investors and communities.  Providing solutions for distressed homeowners remains our primary focus.”

The Charlotte-based bank and mortgage lender had previously halted foreclosures in just 23 states, but apparently decided to go the whole nine yards to satisfy a bevy of complaints from various state Attorney Generals.

The Texas AG, California AG and Connecticut AG had already called for similar foreclosure freezes.

And a number of other states have demanded a halt to all foreclosures, with the latest being Delaware, Iowa, Massachusetts, and North Carolina.

These and similar accusations led Ally Financial and Chase to stall foreclosures in 23 other states.

It’s unclear if more lenders will get on board and/or extend their foreclosure moratoriums to all 50 states.  Stay tuned.

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