BofA To Resume Foreclosures
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- Peter King | December 10, 2010
Bank of America has announced that it is resuming foreclosures, after a two-month suspension to review documentation problems associated with the robo-signing controversy.
The bank said it is resuming sales of foreclosure properties, beginning with vacant and non-owner occupied homes. The bank says that at the point of sale, one-third of its foreclosed properties are vacant.
”The review shows the basis for our foreclosure decisions has been accurate,” said Barbara Desoer, president of Bank of America Home Loans. “We have identified areas of our process that can be improved, and while we make these improvements, it’s important that we move ahead with efforts to reduce the number of abandoned properties across the country.”
The bank says it is taking steps to reform its foreclosure practices, including providing a single point of contact for homeowners in the loan modification process and working to revise the “dual-track” process through which delinquent mortgages are simultaneously evaluated for loan modifications while foreclosure proceedings go forward.
Dual-track process blamed for loan modification woes
The dual-track process, which is common among large mortgage servicers, has been blamed for many of the difficulties homeowners face in trying to obtain a mortgage loan modification throughout the industry. Many report being given conflicting information by their loan servicers, receiving assurances their loan modification is in the works even as notices of foreclosure are posted on their doors.
The “robo-signing” controversy arose when it became known that, in order to process tens of thousands of foreclosed properties each month, many large mortgage servicers had representatives who were routinely signing off on foreclosure legal documents without reading them or verifying the accuracy of the information they contained.
Concerns over improper foreclosures
There was concerns that this not only violated the law, regarding the submission of sworn affidavits, but also that since the information contained in them was not verified, that some homeowners were being improperly foreclosed on as well.
Although Bank of America and other lenders have said they are confident that their foreclosures have been justified, there have been widespread reports of inappropriate foreclosures across the nation. These include several widely reported cases in Texas, Florida and Pennsylvania, where Bank of America sought to foreclose on homes where the mortgages were either paid off or current, even locking the owners out of their homes and shutting off the utilities.
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