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Bank Of America Halts Foreclosures In All 50 States, Congressman Explains What Went Wrong.

On Friday October 8th, 2010 Bank of America halted foreclosures in all 50 states.  This announcement came one week after BofA announced they were pausing foreclosures in 23 states where judges must sign off on foreclosures. Poor handling of paperwork was blamed which was discovered in previous court hearings, where bank employees admitted they had signed thousands of documents a month, without reviewing the information in them. 

BofA said it wanted to investigate it’s process to make sure everything was in order which sounded almost responsible? “We have been assessing our existing processes,” “To be certain affidavits have followed the correct procedures” Bank of America said in a statement. BofA’s statement came two days after JP Morgan Chase said it will also pause foreclosures for about 56,000 homeowners after learning that its employees may have failed to follow guidelines regarding reviewing loan files.

The announcements by Bank of America and JP Morgan Chase came after Ally Financial, which was previously known as GMAC, said it would also pause foreclosures in 23 states, again where a judge must sign off on a foreclosure.

Congressman Alan Grayson of Florida, a state hit hard by foreclosures explains what went wrong with the foreclosure process

So where do we go from here? Your guess is as good as mine, in Florida, a class action lawsuit was filed in July

CLASS ACTION FILED| Figueroa v. Law Offices Of David J. Stern, P.A. and MERSCORP, Inc.

So what happens now? Will other banks follow suit? How long will foreclosures be halted? I guess we will have to wait and see.

Stephen

Hi I'm Stephen Garner, I'm just a guy in the title industry {in Phoenix} trying to change how real estate agents market themselves and their services. To that end, I teach my clients HOW TO leverage sales technologies like WordPress, Content, Video, Camtasia, Final Cut X, iMovie and indexable IDX solutions to convey value and help your ideal client find you online when they are most interested in learning about you and your services. I work for escrows. Hire me!

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  • http://www.blairballin.com Blair Ballin

    Good stuff, and while I’m sure this happened..I don’t think the standard “I was doing a loan mod, bank said they’d cancel the auction, and didn’t” will really matter. Or the “I had a full price offer story.” No one has to approve anything and at least in Arizona I still don’t get how it will have much impact. In the long term, sure, if the properties aren’t released this will just keep dragging out like a bad date.

  • http://www.MortgageMediationGroup.com Kevin Hardin

    Grayson is looking for votes. We must not propagate the missives of politicians looking for votes. Now, the post on the lawsuit above, that has weight. Look at what MERS is putting out. Listen to industry experts that utilized the systems that are being blamed and soon you figure out that in the gun analogy. “Guns don’t kill people, people do”. The same goes for MERS.