Sunday, October 3, 2010

Bank of America delays foreclosures in 23 states

WASHINGTON - Bank of America is delaying foreclosures in 23 states as it examines whether it rushed the foreclosure process for thousands of homeowners without reading the documents.

The move adds the nation's largest bank to a growing list of mortgage companies whose employees signed documents in foreclosure cases without verifying the information in them.

Bank of America isn't able to estimate how many homeowners' cases will be affected, Dan Frahm, a spokesman for the Charlotte, N.C.-based bank, said Friday. Arizona is not among the 23 states where foreclosures will be delayed.

Bank officials plan to resubmit corrected documents within several weeks.

Ally Financial Inc.'s GMAC Mortgage unit and JPMorgan Chase have halted tens of thousands of foreclosures cases after similar problems.

The document problems could cause thousands of homeowners to contest foreclosures that are in the works or have been completed. If the problems turn up at other lenders, the foreclosure crisis could persist longer. Analysts caution that most homeowners facing foreclosure are still likely to lose their homes.

Associated Press October 2, 2010

Bank of America delays foreclosures in 23 states

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