On Friday, October 8, 2010, Bank of America announced it is stopping all foreclosure sales and proceedings in all 50 states, though it's unclear how this action will impact homeowners who are currently negotiating with their lender. In the video above, experts told CNBC that it's bad news for the housing market. The Charlotte based bank and the largest in the Country, decided to halt foreclosures after JPMorgan Chase and GMAC Mortgage's stopped foreclosures last week to examine what it has been shown to be a flawed process for documenting and filing foreclosures.
BofA said in a statement, "We will stop foreclosure sales until our assessment has been satisfactorily completed". The halt in foreclosures comes amid reports that banks have used so-called "robot-signers" to sign hundreds of documents and affidavits used to foreclose on a Miami homes and others throughout the U.S. without reviewing them. These documents are crucial in New York where foreclosures must be approved by a judge, because many properties have securitized loans with multiple stakeholders.
Contributed by MLR Realty
