The Real Estate Bloggers

Bank of America Restarting 16,000 Foreclosures

Posted: 13 Dec 2010 05:32 AM PST

Bank_of_america You really did not expect the banks to keep their moratorium on foreclosures going forever, did you? I hope not.

This week Bank of America is restarting foreclosures on 16,000 homes across the country that had been halted as the bank got it’s paperwork back in order. The foreclosures had been halted when the bank had been found to be using improper practices to process the paperwork of the loans.

So what does that mean to you? If you have a home loan with Bank of America you probably bought a couple of extra months. But come late January or early February expect the stories to come out that old Bank of America has foreclosed on a record amount of homes as the get back up to speed.

The bank instructed its foreclosure attorneys this week to prepare new affidavits in 7,800 cases where court approval is required to foreclose on a home, out of a total of 102,000 frozen by the bank amid documentation concerns. In states where no court approval is required, attorneys were asked to lift the hold on 8,000 delayed foreclosure sales out of 30,000.

The nation’s largest bank as measured by assets is scrambling to get its foreclosure engine restarted amid widespread scrutiny of its mortgage practices. It and several U.S. banks halted foreclosures following allegations employees signed hundreds of foreclosure documents a day without carefully reviewing their contents.

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Bank of America Restarting 16,000 Foreclosures