Bank of America Continues Foreclosure Moratorium
img class="alignleft size-full wp-image-42203" title="foreclosure home" src="/files/wxrimport/2010-10/foreclosure-home.jpg" alt="" width="205" height="105" /><FOX Business Network reports:
Faced with increasing political pressure, Bank of America (BAC: 13.17 ,-0.14 ,-1.05%) on Friday became the first major bank to halt foreclosure sales and proceedings in all 50 U.S. states.
Banks have come under scrutiny in the wake of the disclosure that the industry’s foreclosure process had used “robo-signers,” or people who sign hundreds or thousands of documents a day without reviewing the details.
BofA, which is the largest U.S. mortgage servicer, said it has decided to extend the review of its foreclosure documents across the entire country.
“We will stop foreclosure sales until our assessment has been satisfactorily completed. Our ongoing assessment shows the basis for foreclosure decisions is accurate,” BofA said in a statement.
The revelations on "robo-signers" have led a number of lawmakers have called for an industry wide moratorium on foreclosures amid concerns the process has been unfair to homeowners.
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