Bank of America halts foreclosure actions

2010-10-09 03:38:15 GMT+7 (ICT)

NEW YORK (BNO NEWS) -- The Bank of America on Friday announced the extension of a freeze on foreclosures to all 50 U.S. states after concern that foreclosure documents with false data are being used.

Nevada Senator Harry Reid sent a letter earlier to the mortgage-servicing divisions of Bank of America and called on the company to suspend foreclosures until reports revealing allegedly improper actions and defective court documents were resolved.

"Bank of America has extended our review of foreclosure documents to all fifty states. We will stop foreclosure sales until our assessment has been satisfactorily completed," the lender said in a statement.

"Our ongoing assessment shows the basis for our past foreclosure decisions is accurate. We continue to serve the interests of our customers, investors and communities,†the company added.

Senator Reid said: "It is only fair to Nevada home owners to suspend foreclosures until a thorough review of foreclosure processes is completed and home owners can be assured that their documents are being analyzed properly."

Sen. Reid urged JP Morgan Chase, Wells Fargo and Ally to suspend foreclosures to all 50 states as well.

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I would think there are way too many foreclosures from Banks in the US. But I disagree with the law that allows a bank to absorb the equity position of the borrower and the loss of the borrowers deposit, then sell the property in sometimes quite dubious auctions, without recourse against the bank who also can accept any price and then sue further the borrower.

But with 14 Trillion outstanding in debt by mortgages in the US at the 3rd quarter figures, it would seem this is far greater than the GDP of the country so the banks should ease up and allow debtors time to readjust.