SCOTTSDALE, AZ – October 11, 2010 – (RealEstateRama) — U.S. Rep. Harry E. Mitchell today commended Bank of America for halting foreclosure sales in all 50 states in order to address flaws in their foreclosure process. [Source: CNN, October 8, 2010]”I commend Bank of America for doing the responsible thing and halting their foreclosure sales around the country in order to address flaws in their foreclosure process,” said Mitchell. “As we hear more about current flaws in the foreclosure process, it is even more important that banks slow down and figure out the root of the problem I urge others to swiftly follow suit so that families will not have to worry about losing their home because of a clerical error.”
Bank of America’s action comes after reports surfaced that some of the nation’s largest lenders, including GMAC Mortgage, PNC Financial Services Group and JPMorgan Chase, improperly handled foreclosures. [Source: New York Times, October 4, 2010] In a document obtained by the Associated Press, a Bank of America official acknowledged in a legal proceeding in February that “she signed up to 8,000 foreclosure documents a month and typically didn’t read them.” [Source: Washington Post, October 1, 2010]
Last week, Bank of America halted foreclosures in 23 states to examine whether it rushed the foreclosure process for thousands of homeowners without reading the documents.
Likewise, amid growing pressure from outside consumer groups and individuals, two other of the nation’s biggest lenders, JPMorgan Chase and Ally Financial Inc., halted foreclosures in the 23 states where courts have jurisdiction over the process. [Source: Los Angeles Times, October 8, 2010].