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Bank Of America Halts Foreclosures

Foreclosure

Bank of America Halts Forclosures in All States

Bank of America Corp. announced on Friday that it will temporarily stop foreclosure sales in all states as mounting concerns and suspicions that the nation’s largest bank and other mortgage lenders have seized homes without proper documentation showing who has clear title to the home.
The announcement came a few days after Massachusetts state Attorney General Martha Coakley called on Bank of America and other major lenders to halt foreclosures in that state because of reports that executives routinely signed vast numbers of documents without verifying information, a process known as “robo-signing’or alternately using electronic database “foreclosure mills” to come up with what some call a smoke and mirrors way of proclaiming legal title to a property.

The bank did not say how many of its Massachusetts customers would affectively be at risk of losing their homes.

Bank of America and two other major national lenders, GMAC Mortgage and JPMorgan Chase, had already halted foreclosures in 23 states that require a judge to sign off on them. Judicial review is not required in Massachusetts.

A Bank of America spokesman gave a statement that the lender would press ahead with foreclosure proceedings, but would stop short of actually taking back properties until the company reviews all paperwork. He estimated that could take several weeks. The spokesman said BOA has no reason to believe it wrongly foreclosed on mortgage holders.

Coakley and other state regulators yesterday praised the lender’s decision and called on others to follow suit.

Barbara Anthony, undersecretary of the state Office of Consumer Affairs and Business Regulation, said state officials will keep scrutinizing the practices of national lenders.

“Other larger servicers that have acted on flawed foreclosure documentation should similarly halt foreclosure proceedings until they can prove they are complying with all state laws and safeguards,’’ Anthony said.

Officials from GMAC Mortgage and JPMorgan Chase would not comment on whether they intend to expand their foreclosure moratoriums to other states including Massachusetts. Wells Fargo, also one of the nation’s top mortgage lenders, said it has no plans to stop foreclosing on properties with delinquent mortgages.

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Posted by on Oct 9 2010. Filed under Top Stories. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry

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