Bank of America Halts Foreclosure Actions in 23 States

Bank of America announced that it would delay foreclosure actions in 23 states so that it may review whether it rushed the foreclosure process for thousands of homeowners across the country according to the Huffington Post. Bank of America, one of the nation's largest bank, now joins the growing list of mortgage companies and servicers whose employees signed documents without verifying the information in them.

The underlying problem, known as "robo-signing," involves bank employees who signed thousands of foreclosure-related documents without reading them or even verifying the information contained in them.  These unverified documents were then filed in court proceedings to support the bank's efforts to foreclose on a home. 

If the document is unverified, then it could be considered fraudulent by a court of law. If it's fraudulent, then it calls into question the foreclosure action itself.  These document problems could lead to thousands of homeowners contesting foreclosures that are in process or that have been completed.

Fortunately, attorneys general across the country are beginning to enter this latest bank-created crisis in order to step up pressure on the industry.  For example, Connecticut Attorney General Richard Blumenthal called for a 60 day moratorium on all foreclosures in order to "stop a foreclosure steamroller based on defective documents."  

This latest banking crisis sheds further light on the danger of the foreclosure train running down the tracks without any obstacles to stop it.  Throughout the country in states like California, Florida, Nevada, Oregon and Georgia, bank departments continue to make vital errors in the foreclosure process with wrongful foreclosure lockouts and trashouts happening all too often.

If you've been the victim of a wrongful foreclosure lockout or trashout and would like more information, just contact Phillips & Garcia for a confidential case evaluation.