Lori Cutka's Blog

Monday, November 8, 2010

Bank of America Halts All Foreclosures in US – Other Lenders likely to Follow Suit

Bank of America announced that it will voluntarily stop all foreclosure sales until it has completed an internal review of its foreclosure process. The review is in response to recent allegations that the mortgage giant has violated Federal and State laws by foreclosing on homeowners without proper documentation.

Bank of America initially announced it would confine this review of its foreclosure proceedings to the 23 US states where courts have jurisdiction over the foreclosure process, known as “judicial foreclosure” states.

Other lenders such as PNC, GMAC, JP Morgan Chase are also reviewing their foreclosure proceedings and will likely follow suit for legal and public relations reasons.

Already, lawmakers on Capital Hill have called for all lenders to follow Bank of America’s lead and stop foreclosure proceedings until they too have reviewed their foreclosure process to ensure compliance with Federal and State laws.

Real estate brokers across the country have also started reporting REO properties being ordered off the market by some mortgage servicers.

Finally, Old Republic National Title has stopped issuing title insurance policies for properties foreclosed on by JP Morgan Chase and GMAC Mortgage.

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