Bank of America is set to once again resume foreclosures on more than 100,000 homes in 23 states next week. Quality control in the company's foreclosure department caused the temporary halt of more than 100,000 homes in the foreclosure process in 23 states.
Bank of America plans to resubmit documents with new signatures in the 23 states that require a judge's approval to restart the foreclosure process. It will delay fewer than 30,000 foreclosures.
An official statement on Bank of America's Web site reads as follows:
"We have reviewed our process for resubmission of foreclosure affidavits in the 23 judicial states with key stakeholders, including our largest investors. Accordingly, Bank of America today began the process of preparing foreclosure affidavits for submission in 102,000 foreclosure actions in which judgment is pending.
"We anticipate that by Monday, Oct. 25, the first foreclosure affidavits will be resubmitted to the courts. Upon judgment, foreclosure dates will be set and Bank of America will resume foreclosure sales in such proceedings in the 23 judicial states.
"We will continue to delay foreclosure sales in the remaining 27 states until our review is complete on a state by state basis. We anticipate over the course of this pause, less than 30,000 foreclosure sales will have been delayed. As was the case for our judicial state review, our initial assessment findings show the basis for our foreclosure decisions is accurate.
"Our decision to review our process and later, to extend our review to all 50 states, has been an important step to give customers confidence they are being treated fairly."
Bank of America is among the nation's only lenders to freeze foreclosures in all 50 states. Other companies, including GMAC Mortgage/Ally Financial Inc., PNC Financial Services Inc. and JPMorgan Chase have stopped foreclosures after faulty foreclosure procedures came to into the public eye. The use of so-called "robo-signers" by these leading lenders have come under attack. The robo-signer is a designated employee in a mortgage servicer's foreclosure department who signs off on thousands of foreclosure proceeding documents on a daily basis without properly reviewing the documents.
For more information, visit www.bankofamerica.com.