News Column

BofA To Delay Foreclosures in 23 States

October 1, 2010

Richard Larsen--HispanicBusiness

Bank of America

Bank of America will delay foreclosures in 23 states, the latest firm to do so, as it looks to see if employees signed foreclosure documents with reading them or verifying their accuracy, two major wire services reported Friday.

The Associated Press said it obtained a document that showed a Bank of America employee acknowledging she signed up to 8,000 in a month without reading them.

Bank of America spokesman Dan Frahm told Bloomberg News that the delay 'hopefully will give peace of mind to those monitoring the industry that we've used an abundance of caution that those foreclosures in process are handled correctly.'

According to The Associated Press, two other companies, Ally Financial Inc.'s GMAC Mortgage unit and JPMorgan Chase, also halted numerous foreclosures over similar problems.

Bloomberg News said federal lawmakers and state officials consider that such practices could amount to fraud.

Source: (c) 2010. All rights reserved.

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