Bank Of America Puts Nationwide Freeze On Foreclosure Sales

Last week, Bank of America announced it was putting a freeze on foreclosures, foreclosure sales and evictions in 23 states. On Friday morning, the bank declared it has ordered a halt to those sales in all 50 states.

This news comes as other lenders, like JPMorgan Chase and GMAC/Ally enacted similar freezes in those 23 states and attorneys general in several states have called for moratoriums on foreclosures while they investigate allegedly misleading and potentially illegal activities.

It could also be only a coincidence that BofA’s latest action comes a day after the White House said no to a bill that would have possibly made it easier for questionable foreclosures to occur.

Said BofA in a statement to CNN:

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.

Bank of America halts all foreclosure sales [CNN]

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  1. grapedog says:

    Now, if only ticketmaster would stop selling tickets, the world would be a much better place!

  2. jason in boston says:

    I think these types of foreclosure mills might end up with some people in jail. I hope.

  3. grapedog says:

    “The announcement came two days after JPMorgan Chase (JPM, Fortune 500) said it will also halt foreclosures for about 56,000 homeowners after learning that its employees may have approved foreclosures without personally reviewing loan files.”

    Yeah… because they had no idea this was going on beforehand? I call BULLSHIT!

  4. banndndc says:

    woo hoo the destruction of our economy (and country) will soon be complete. in their haste to set up all these mortgage based securities the banks never did the paperwork. nobody has the physical title anymore. what do we do? do we follow the law and basically destroy the whole real estate market or do we partake in another massive giveaway to the banks?

    we’re screwed. the makers of fine print weren’t following their own requirements and they’re gonna bring us all down.

  5. agpc says:

    Not hiring enough notaries to verify documents which are used to, like, you know, take peoples houses. Penny wise, pound foolish.

    It’s almost as if these banks decided “fuck it, lets just reinforce the perception that we are an extremely shady industry!”

    They have become caricatures of themselves.

    • c!tizen says:

      Shady isn’t the word I’d use to describe the banking industry, please choose from the following:

      Brain-dead; Moron; Ass-hat; Ass-hole; Numerically challenged; Drastically inefficient; Economically overrated; Stingy; Selfish; Mentally retarded; Financially fucked; Ubber Magoo to the extreme; Anti-calculator; Pro-thoughtlessness; Overly undereducated; Swindlers; Crooks; Legal thieves; and my favorite… douche bags.

      Anyone else have any suggestions?

  6. diasdiem says:

    Sucks to be you, Puerto Rico and Guam.

  7. Oranges w/ Cheese says:

    So we’re finding out that a lot of these were falsified?

    What’s going to happen to people who may have been erroneously turned out of their homes and are now on the streets?

    • johnva says:

      That’s a good question that we should be asking. I would imagine they would have strong grounds for a civil lawsuit against the mortgage servicers in question. This could be the mother of all legal messes by the time it’s sorted out.

      Already there are title insurance companies refusing to issue policies against new home purchases that are homes previous foreclosed on by a number of these big banks that used these foreclosure mills, and rightfully so. What will happen is that this will force home prices down further, possibly increase the rate of strategic defaults, etc. So the banks have created yet another systemic risk for the entire home market and broader economy through their greed and incompetence. The negligence and corruption here is staggering.

    • LINIStittles says:

      Falsified? Absolutely not. Never properly verified? Absolutely.

      It’s not like the majority of foreclosures are illegitimate. There are some, however, that were mistakenly approved and now everyone gets the benefit of some extra time to stash extra cash before they’re out of their homes.

      If some people find out that they were wrongly foreclosed on, you can be sure there will be lawsuits.

      • banndndc says:

        the notarizations were falsified (didnt witness etc). the attestations were fraudulent (didnt personally review and dont have the paper trail to prove ownership) thus the affadavits equaled perjury and all sorts of documents needed to be created well after the fact (making them forgeries). this is a giant clusterfuck. the foreclosures may be justified but at this point that’s irrelevant since all the paperwork is wrong (and full of illegal acts).

        • johnva says:

          Exactly. This isn’t merely a minor technical issue with the foreclosures: it’s premeditated fraud on a massive scale (and probably it’s being perpetrated at least in part in order to cover up some previous fraud on the part of the banks, such as improper documentation/forgeries involving mortgage applications). Many of the foreclosures may well be legitimate, but we cannot know whether ANY of them are until this is sorted out and we put a stop to the forgery and fraud.

  8. Chellie says:

    “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.”
    What? Seriously?

    More like: “We continue to serve the interests of ourselves, our golden parachutes, our bonuses and our political contributions.”

  9. johnva says:

    The idiots in Congress apparently passed the shady bill in question that would have allowed banks to commit fraud in order to cover up fraud (in Alan Grayson’s words) during a suspension of the rules. That means that there was no record kept of who was for it and against it. Nice that the banks can just get Congress to do whatever they want regardless of the merits…and this is a bipartisan problem. I don’t believe that they can pass legislation without a vote without it being UNANIMOUS.

    Thanks goodness for President Obama on this one. Even if there are some nasty consequences associated with sorting out this horrible mess, it’s better that the process be transparent and in the open. Air the dirty laundry so we can move on instead of worrying about what other “surprises” the banks have hidden from us.

    • FrugalFreak says:

      WWRPD? What would Republican President Done?

      • Happy Tinfoil Cat says:

        The last one just cut a check to ‘CASH’ for $700,000,000,000 and tried to palm it off the last lame-duck week of his presidency if that is any indication.

  10. wickedpixel says:

    I suspect this is why the short sale I’ve been trying to buy was suddenly approved last week after months of stalling by BofA. If they can’t foreclose on these houses, might as well approve the short sales and get them off their books that way.

  11. Joe-TFW says:

    This predatory behavior by the banking and loan institutions all over the U.S. (not just BofA) should have been nipped long, long ago. Until these companies are held responsible for their reckless behavior, they will simply keep putting up fronts like this and acting like they care.

    • MustWarnOthers says:

      I fully agree with you, but beware, you’ll probably be labeled a socialist if you suggest that the Government or any other agency be given any extra authority to make sure the Capitalism Reindeer Games don’t get out of control.

      http://www.washingtonpost.com/wp-srv/business/interactives/frenzy/

      Here’s a fun link to play with.

      Creating wealth from next to nothing. (ignoring the financial obligation between the originator and the homeowner)

      Certain groups like to claim how the wealth disparity of this country is because the rich work so hard. Yeah, work so hard to lobby and bend the rules of this “Game” we call capitalism.

    • Clyde Barrow says:

      Ah don’t worry. They’re probably already working on creating another front to this one.

  12. HideYaKidsHideYaWife says:

    This is ridiculous. The eradication of this bad debt needs to happen now, not be prolonged by vetoes like this. This will only hamper the economic recovery process. It’s pretty simple people. If you don’t pay your mortgage, don’t expect to keep your house. Don’t pass the buck on your own mistake. If your mortgage is underwater, you have no one to blame really but yourself. It’s not like the banks are forcing homeowners with good standing current mortgages out of their homes. These are loans on houses that are way past due. The housing market will only continue to languish if these banks are not able to get these bad debts off their balance sheets. This is purely a political veto, not an economic one.

    • johnva says:

      The way to eliminate the bad debt is not to allow banks to do whatever they want during foreclosures. Transparency, not further opacity, is what is needed. The veto is the right thing to do.

    • Erik Hughes says:

      Eradication of bad debt also occurs when shady banks take their medicine and fail.

  13. maruadventurer says:

    I would not give BofA one sliver of credit for any of this. The fact is one of the largest title companies in the country told BofA and several other banks that they will NOT accept nor offer title insurance on any REO properties till further notice. The reason — Shoddy or misrepresented work on the part of BofA and their assigns. The title company would be on the hook if not done right. Research that and get to the story behind the story.

  14. np206100 says:

    So does this mean I can stop paying my mortgage and not worry about getting kicked out?

    • nbs2 says:

      If so, I’ve got some home improvements I’d like to make – the extra $1500/month would get me there pretty quickly.

    • Erik Hughes says:

      Well, you could try to find out if the bank (or anyone) has a clear title to your house. If not, and depending on what state you live in, you could probably drag out a foreclosure for a couple of years. If you save all the money you would have been spending on your mortgage, you could possibly pay cash for a new place across town…

  15. econobiker says:

    Can anyone say “Class Action Lawsuit” if they hadn’t shut this down quickly?

    And there probably will be one anyhow but we all know the only people who profit from those…

  16. Clyde Barrow says:

    Does this mean that I can quit paying my mortgage? lol.

  17. Clyde Barrow says:

    Ahhhhh gee, now all those temp workers at the banks will lose their jobs. . But maybe they can put in for worker’s comp for writing cramps.

  18. peebozi says:

    lawyers and bankers together again! the us is fuct. :(

  19. kaleberg says:

    This seems to be our equivalent of the famous Bank Holiday under FDR way back in the early 30s. Basically, all the banks were closed for reorganization, and they reopened insured by the FDIC. The fear then was that without banks everyone would climb trees and shy coconuts at one another, but people just issued and honored checks and IOUs until the banks reopened. Of course that was much further into the depression than we are now, so we have so much to look forward to. I’ve got my coconut, but my tree climbing skills are rusty.

  20. oldwiz65 says:

    Probably only because it is an election year and the government told them you have to hold off for a while cause the voters are upset. After the elections, it will be back to business as usual, screwing people right and left. The banks know full well they are on the edge of legality, but they depend on their gifts to congress to keep themselves out of trouble.