Post image for Bank of America to resume foreclosures in 23 states

Bank of America to resume foreclosures in 23 states

by Kelly MacNeil on October 19, 2010

Bank of America has announced plans to lift its foreclosure freeze and will begin resubmitting foreclosure document requests to courts in nearly two dozen states.

After imposing a nationwide foreclosure moratorium on October 1 the bank will begin requesting court approval to seize 102,000 homes on October 24.

The bank’s foreclosure freeze came following reports that officials failed to read legal affidavits before signing them, having employed “robo-signers” who attested to the accuracy of foreclosure without reading the documents, according to ABC News.

After 24 days of review, the nation’s largest bank and mortgage servicer claims it has not found a single error in its foreclosure processes.

BofA has not yet indicated how long the moratorium in the other 27 states would last. However, it will continue to conduct reviews to ensure proper foreclosure procedures were followed in the other 27 states that do not require court consent but do have rules that lenders must follow when seizing homes, reports the New York Times.

According to spokesman Dan Frahm, about 195,000 BOA customers nationwide have missed more than two full years of payments. “As was the case for our judicial state review, our initial assessment findings show the basis for our foreclosure decisions is accurate,” said Frahm in a statement.

The bank also revealed today a $7.3 billion loss due to a $10.4 billion write-down in the value of its credit card unit which will be hurt by federal regulations that limit overdraft charges and other fees, reports the Times.

CNBC reported that foreclosure filings in September were up by 2.53 percent. However, real estate investors claim that a foreclosure moratorium would threaten housing prices and cause lenders to further restrict home loans during a period of nearly stagnant lending, according to StopTheHype.com.

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