Bank of America Stops Foreclosures

[flip_it_fast]

I hear that the Bank of America has frozen foreclosures in twenty-eight states.

They have done so in order to have the time to assess whether or not there have been flaws in the process.

"We have been assessing our existing processes," Bank of America said in a statement. "To be certain affidavits have followed the correct procedures, Bank of America will delay the process in order to amend all affidavits in foreclosure cases that have not yet gone to judgment in the 23 states where courts have jurisdiction over foreclosures."

This news comes just two days after JP Morgan Chase announced that they were doing the same thing. They want to see if their employees approved foreclosures without personally looking at client loan files.

"We expect to provide instructions to our servicers later today that are intended to ensure that their foreclosure processes are in compliance with state law and Freddie Mac's servicing requirements," the lender said in a statement. "It's essential that the industry work together to protect borrowers' rights and ensure the integrity of the foreclosure process."

[flip_it_fast]

Update....

I just read that Ohio's Attorney General is suing Ally because they had apparently been "robo-signing" foreclosure affidavits without verifying any of the documentation first. Meaning that people lost their homes and they possibly shouldn't have.

Attorney General Richard Cordray has requested an injunction that would block Ally from moving forward on any pending foreclosure in Ohio or allowing the home to be sold. He is also asking for civil penalties of up to $25,000 for every violation of Ohio law and for consumer restitution.

"We know that as Ohioans were fighting to save their homes, this loan servicer benefited financially from the dire circumstances," Cordray said in a statement. "Instead of stepping up and assisting those at risk of losing their homes, it is clear that GMAC chose to compound the problem through fraudulent and unfair and deceptive practices."

I am so glad that he is standing up for those people!

Ally of course is denying any wrong doing. Hopefully the truth will come out in court and if justice needs to be served- is.

[propiper]

I agree - someone needed to step in and say "stop".

I know there has to be some cases where it makes more sense to work something out than to take a home.

Unfortunately, like most everyone in this world they are in it for the money. The less you owe, the more equity, the quicker they seem to take it.

[homealone]

I agree, all to often it seems that people are only interested in the money and nothing else.

It would be nice to see more businesses start using their hearts and helping people rather than just trying to rip everyone elses out.

I know that there are companies in this world that are able to pay themselves millions of dollars in bonuses every year, and if they can do this kind of stuff then I believe that they should be more willing to help people in any way possible.

[flippinout]

It would be a real shame to find out that the people that were doing the foreclosures were not taking the time to read all of the information presented to them before okaying the foreclosure.

To think that someone would do something like this is heartbreaking. Dont these people realize that these arent just figures on a computer screen or piece of paper? That these are real moms and dads and kids that will be without a home? That their credit scores will be tainted and that buy a home in the future will be next to impossible.

These are peoples lives that these folks are really making a mess of if this is the way they have been doing things with the foreclosures.