Bank of America Extends Foreclosure Freeze to All States

Foreclosure salesBank of America said today it is extending its halt to foreclosure proceedings to all 50 states until its review of documents has been “satisfactorily completed.”
The largest U.S. lender by assets, Bank of America had previously announced a freeze on foreclosure actions in the 23 states where the process is controlled by the courts.
In addition, a fourth major lender, PNC Financial Services Group, has announced it is halting most foreclosures in those 23 states, pending its own review of foreclosure documents. JPMorgan Chase and Ally Financial’s GMC Mortgage unit had already made similar announcements over the past two weeks.
Reports of “robo-signing” – or the extensive approving by mortgage servicer managers of affidavits without verifying the facts of a case – prompted the massive review of documentation.
The foreclosure paperwork controversy now threatens to prolong the foreclosure crisis, the largest obstacle to a recovery in the vital housing market. The Justice Department and several state attorneys general are investigating the actions of lenders’ foreclosure processors.
“We will stop foreclosure sales until our assessment has been satisfactorily completed,” read a statement posted by Bank of America on its website. “Our ongoing assessment shows the basis for 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.”
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