Foreclosure Freeze: Bank of America to Review Paperwork for Errors

Bank of AmericaBank of America has become the third major lender in the last two weeks to effectively freeze or review foreclosure cases for paperwork errors in the 23 states where the process is controlled through the court system.
Bank of America, the nation’s largest lender by assets, has taken a much larger step in the nationwide issue of potentially error-ridden foreclosure documents rushed through the courts.
Unlike JPMorgan Chase and GMAC Mortgage, Bank of America said in a statement that it would “amend all affidavits in foreclosure cases that have not yet gone to judgment.”
Chase has said it is suspending 56,000 foreclosures in the 23 states after finding errors in documents related to foreclosed homes. Last week, GMAC Mortgage, another of the nation’s largest mortgage lenders, said it may have improperly rushed to process foreclosures and suspended an undisclosed number of cases.
The action by Bank of America could result in many more tens of thousands of cases pushed into limbo. Spokespeople for the bank said there was no definite timeline, but that the cases would be eventually be re-submitted.
The full or partial moratoriums by the three lenders stem from a rampant symptom of the foreclosure crisis and the backlog of court cases — lenders deploying so-called “robo-signers” who speed through paperwork without carefully checking for accuracy.
Robo-signers have been exposed in legal cases – particularly through depositions by defense attorneys — throughout the 23 states with court-system foreclosure procedures.
Robo-signers are often mid-level bank executives who sign thousands of affidavits containing the basic facts or findings in a particular foreclose case. The affidavits were usually prepared by lawyers for a flat fee based on volume. Often, the goal is to avoid going to trial and gaining a summary judgment in the back-logged court system where judges are overwhelmed with caseloads.
Connecticut is one of the 23 states where judicial procedure control foreclosures. Connecticut Attorney General Richard Blumenthal yesterday asked his state’s Judicial Department to freeze all home foreclosures for 60 days “because of defective document filings and institute measures to assure the integrity of future filings.”
Blumenthal made the request public before Bank of America announced its review of foreclosure cases.
“This freeze should stop a foreclosure steamroller based on defective documents and enable effective remedies,” Blumenthal said in a statement. “The actions of (Chase and GMAC) are inexcusable, a possible fraud on the court undermining the integrity of the legal process and consumers’ ability to fight foreclosures.”
Twenty-three states run foreclosure proceedings through their court systems, requiring documentation to verify mortgage data and ownership. The 23 states are: Connecticut, Delaware, Florida, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Nebraska, New Jersey, New Mexico, New York, North Dakota, Ohio, Oklahoma, Pennsylvania, South Carolina, South Dakota, Vermont and Wisconsin.

10 thoughts on “Foreclosure Freeze: Bank of America to Review Paperwork for Errors

  • October 4, 2010 at 3:18 pm

    I think they should use this bail out money to help families save there homes instead of letting them sit there and go to the bad and cant be sold. Bank of America acts like they could care less about families loosing there homes. I am one of the people they could care about my husband lost his job and is sick and they have screwed around for 26mths on my acct and i still dont know anything yet!!!!!

  • October 5, 2010 at 12:02 am

    BOA is the most inept institution i’ve ever dealt with! We filed for a mortgage modification and it took six mos. for them to tell us we were approved and that our paper work would be coming in the mail soon. The paper work never came in the mail; this is several months later. We call them and they have completely lost our application and we had to reapply!! Six months later now we don’t qualify and we are officially in forclosure with a sale date on our house!! I feel sorry for anyone dealing with BOA, what a mess!

  • October 5, 2010 at 1:40 pm

    Whats states are included in this freeze?

  • October 5, 2010 at 6:33 pm

    The 23 states are: Connecticut, Delaware, Florida, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Nebraska, New Jersey, New Mexico, New York, North Dakota, Ohio, Oklahoma, Pennsylvania, South Carolina, South Dakota, Vermont and Wisconsin.

  • October 9, 2010 at 8:37 pm

    This is really sad that we have to suffer by the hands of someone else’s mistake…what if i sold my current home i’d be a#$ed out… not all forclose close homes were taken,some people can’t afford to keep up with the mortgage and the taxes …. anyway the whole 30yr fix rate thing is set up to keep you making payments on your home till your around 60-70 yrs( the rest of your life) anyway …I’d say if you have the money saved up buy your home out right… wipe out the your Mortgage payments in pay taxes only.

  • October 10, 2010 at 7:22 pm

    Was mailed foreclosure papers that say it’s going in front of a judge in 14 days…I live in the state of New Jersey…I mailed Chase a modification months ago mailed certified..They never answered my request..When I called to check on my situation, all I spoke to were nasty, rude, collectors..I had a chapter 7 Bankruptcy at the time…Now, they are coming for me to take my house..I’m on workmans compensation…Been out of work since April…Having rotor cuff shoulder surgery very soon…Not a good time to be thrown out of the house me & my kids have been living in for 20 years…Did they freeze in New Jersey?…Do I have any recourse to delay the forclosure for at least till after I’ve recooped my surgery?..

  • October 11, 2010 at 9:13 am

    I believe they should just modify all loans and drop interest rates and reduce balances and take the loss. They would loose alot less if they just helped people that way. They have already made thier money. Banks are greedy and heartless. They should open thier hearts to all these families and stop beating arround the bush! **qualify everyone for loan modification.”

  • October 11, 2010 at 2:15 pm

    I’m not sure how balanced this great nation is! The banks’ mis-treatments of borrowers was practiced in all 50 states across this great nation, yet, a foreclosure freeze is only applicable to less than half the states!?!? How do the rest of borrowers in other states going to be judiciary protected from these wrongfully done foreclosures? Where’s the government when we need it?

  • October 13, 2010 at 3:07 pm

    after we called boa the rep filed info for an appeal.then we recieve another fedex envelope with a letter from boa saying we didnt qualify for mod due to all the payments not being made. yes we did! at this point we feel we are getting the run around and they just want us to give they can take our home! we called them again about a month ago..and was told it could take a few weeks for another appeal request. still waiting.

  • October 26, 2010 at 11:11 am

    Bank of America is a Joke. I lost my job 20 months ago. Fell a couple months behind. My mother-in-law paid it That was to Taylor,Bean,and Witaker. The next month I sent payment.Check was returned.Was told on phone by T,B and W that Bank of Amerrica was my new Mortgage company. Contacted them by phone.Rep told me to send check, was returned. Called Bank of Ameica, was told had to be Certified Check.Sent that. About 3 weeks later get 2 letters in mail. One is my returned check. The other letter was from BOA also. It read “Have not recieved funds,therefore must start foreclosure proceedings.
    Please, I need someone to help me. I believe I have been done a terrible wrong. I have all letters discribed.

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