bank of americaBank of America (BAC) plans to halt foreclosure sales across the nation, as it reviews whether it handled its foreclosure documentation and procedures properly, the banking giant said Friday.

BofA will continue the foreclosure process on delinquent borrowers, but will stop short of foreclosure judgments and sales scheduled for Saturday and beyond.

The move by BofA extends the mortgage foreclosure moratorium it had initiated in 23 states earlier this month, after it came to light that employees were signing off on foreclosure documents without verifying all the information contained in the documents. Other financial institutions, including Ally Financial's GMAC Mortgage and JPMorgan Chase (JPM), also issued a temporary halt earlier this month in the 23 states that require court approval to foreclose on properties.

In expanding its moratorium nationwide, BofA's spokesman Dan Frahm stated:
Bank of America has extended our review of foreclosure documents to all fifty states. We will stop foreclosure sales until our assessment has been satisfactorily completed. Our ongoing assessment shows the basis for our past 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.
The decision to expand the moratorium follows a call on Thursday by Rep. Edolphus Towns (D-New York), chairman of the House oversight committee, for the institutions to expand their moratoriums nationwide. Apparently, BofA was listening to Edolphus and a number of other state and federal officials, but its unclear whether GMAC and JPMorgan Chase will follow.

JPMorgan and GMAC declined to comment on whether they will take similar action.

Earlier this week, GMAC issued a statement about its foreclosure procedures after the Ohio Attorney General filed a lawsuit against the lender alleging it used fraudulent affidavits and documents during court foreclosure proceedings. In its statement, GMAC said it believed there was "nothing fraudulent or deceitful about its foreclosure practices." It noted that if any procedural errors were made while completing certain documents, the lender immediately took steps to fix them.

Congress is also weighing in the issue. Sen. Christopher Dodd (D-Conn), chairman of the Senate banking committee, announced Friday the committee will hold a hearing on Nov. 16 to investigate the mortgage servicing and foreclosure processing controversy.

"American families should not have to worry about losing their homes to sloppy bureaucratic mismanagement or fraud," Dodd said in a statement. "I am deeply troubled by recent revelations and allegations of practices by some of the nation's largest lenders. Regulators at the federal, state, and local levels have a responsibility to uphold the law and protect consumers from unfair foreclosure, and lenders have a duty to not cut corners around the law."





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fmsperlazza

I applied for a mortgage modifacation on august of 2009 from bank of america and was told by them there is nothing out there for me ive been in my home since 2004 and never missed a payment my wife became unemployed and my buissnes slowed due to the recession i reapplied in august of 2010 and havent heard any news from bank of america all my phone calls to them go knowhere now my home is in forecloser and they wont help me and my family no sale date was assigned yet with all the programs oboma put out there bank of america wont help me and my family i guess the american dream is really dead.

October 13 2010 at 9:10 PM Report abuse rate up rate down Reply
urbanarea

This has nothing to do with Obama's policies!!!!!!! Bank of America has to many untrained people working in area's they should not be. I was employed in the mortgage industry for 15 years, and I know the rules and regulations that should be followed . I can personally tell you that they allow people to talk to customers on the phone without the slightest bit of knowledge, and the information they give out is in direct violation of many of the rules and regulations required by law. Obama's policies have nothing to do with this, this is directly related to a corporation being so large that it is impossible to regulate a company this size.

October 10 2010 at 2:04 PM Report abuse rate up rate down Reply
londonmum9

If you want to give homebuyers a break that stop the insanity of allowing the prices of raw materials to be driven up. First automobile companies will have to charge more with platinum and palladium etfs and now we hear there is a bank that is going to start a copper etf. Four hundred pounds of copper goes into the average house it is amazing that more attention is not paid to this

October 09 2010 at 11:55 AM Report abuse rate up rate down Reply
julforyou

I have a better idea, instead of merely stalling foreclosures, how about giving those who have been struggling but making their payments while unemployed a break. I mean it is not like I want to get behind on my payments and have not up to this point, but a reduction in the payment would be nice. I do not qualify for any of the special programs because I am not working.

October 09 2010 at 2:02 AM Report abuse rate up rate down Reply
justmibaby

Some very interesting comments i just perused through. My wife & i owned a home at the time Jimmy Carter the Peanut Farmer was our President . Our mortgage went from 8 or 9 % up to 16 or 17% .Literally doubled in a matter of months,no one bailed us out ,no freeze on payments, we lost our home !!!!!!!!And i will never forget that fact !!!!!!!Nor will my children !!!

October 08 2010 at 9:57 PM Report abuse rate up rate down Reply
KATHY

Too little too late!!!!!!!!!!!!!!!!!

October 08 2010 at 6:40 PM Report abuse +1 rate up rate down Reply
coyotedav

we need another r.t.c. resulution trust corp. as in the 90's.....

October 08 2010 at 4:52 PM Report abuse rate up rate down Reply
RICHARD

My experience with B of A has been rather odd.I completed and was accepted into a modification program with B of A,and completed my "trial period" problem is I still get deliquent notices and threats of "accelerated payment" from one devision,and a statement from another that my new loan will begin within a month,seems there left hand has no idea what there right hand is doing add to all this,the economy and the democrats not being able to decide on taxes or food stamps,no wonder the banks and business are at a standstill

October 08 2010 at 4:50 PM Report abuse rate up rate down Reply
1 reply to RICHARD's comment
mdalhover5

I too am having this problem...I talked with the end that is starting foreclosure and they had no idea that my loan was in modification! It would be nice if everyone at BAC worked together!

October 11 2010 at 2:11 PM Report abuse rate up rate down Reply
Linda

I believe the vast majority of people who purchased homes with the intention of PAYING on them. The problem was the ILLEGAL acts done with the ARM mortgages, those who were involved saw a chance at a "get rich scheme" for themselves and took complete advantage of that situation. It is always WISE to have a real estate attorney LOOK at the paperwork before you purchase a home. As "lay people" we are not astute enough to dechipher all the realty/ mortgage wording and can end up in deep trouble...I believe in the people of this country, I don't believe the vast majority of them are cheaters and are hard working folks who more than likely COULD afford the house at the OUTSET--it was when the ARM's adjusted that the trouble started for the home owner's. and banks not willing to do anything much to work with them to keep the home from foreclosure. I know that where I live, there has been many foreclosures--speaking of my little corner of the world, and the homes do not sit empty for very long...Usually realtors will buy them up at auction, go in and fix them up and then put them on the market at a higher price. An average person really has not much chance of purchasing a foreclosure because I believe the realtors are given priority..whether they will admit it or not. There are lots of problems still in the market and more troubles coming down the pike. I also heard that Obnama's goal is to have everyone RENT, that no one --repeat, NO ONE will be able to OWN their own home. True? I don't know. I just heard that.

October 08 2010 at 4:21 PM Report abuse +3 rate up rate down Reply
anastrojr

Some people are meant to own homes and some are meant to rent. Some are called Landlords and others are called tenants!!!!!!

October 08 2010 at 4:00 PM Report abuse +1 rate up rate down Reply