Bank Of America Admits It Kinda Sorta Screwed Up On Some Foreclosures

In spite of all the evidence to the contrary, Bank of America has never really confessed to making errors on home foreclosures… until today.

As BofA gets back to reviewing foreclosures in 23 states, it now admits that maybe it could have done a better job.

From the Wall Street Journal:

The Charlotte, N.C., lender discovered errors in 10 to 25 out of the first several hundred foreclosure cases it examined starting last Monday. The problems included improper paperwork, lack of signatures and missing files, said people familiar with the results. In certain cases, information about the property and payment history didn’t match.

Some of the defects seem relatively minor, according to the bank, and bank officials said they haven’t uncovered any evidence of wrongful foreclosures. There was an address missing one of five digits, misspellings of borrowers’ names, a transposition of a first and last name and a missing signature on one document “underlying” an affidavit, a bank spokesman said.

That’s 10-25 mistakes in less than 1% of the foreclosures in those 23 states. Thus, BofA could be talking about hundreds of f-ed up foreclosures as they continue to go through their files, and possibly thousands when you add in the foreclosures from the 27 other states.

BofA stated that “our initial assessment findings show the basis for our foreclosure decisions is accurate” in its decision to lift the foreclosure freeze. But according to the Journal, that statement was made after the bank had only reviewed less than 1,000 of it foreclosure files.

A rep for the bank tells Reuters: “We are not claiming perfection, nor can we. We are committed to getting our process right and giving our customers confidence they are being treated fairly.”

BofA Finds Foreclosure Document Errors [WSJ]

Bank of America finds foreclosure mistakes: report [Reuters]

Comments

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  1. Loias supports harsher punishments against corporations says:

    “Oops, my bad” is not a legal argument.

  2. LINIStittles says:

    Sloppy and irresponsible, yes, but I highly doubt there are many that were wrongly foreclosed upon. Obviously, if they do find wrongful foreclosures, the victims should be fairly compensated for losses and then some.

    • sleze69 says:

      One statistic I am interested in is, prior to 2006 how many times did BoA (or Countrywide) foreclose on a house that was fully up to date on its payments, had a mortgage with some other company OR had no mortgage at all. I am gonna go out on a limb here at guess ZERO.

      No matter HOW many foreclosures were accurate, I would say that ZERO should be the upper threshold for essentially stealing someone’s house.

      • illusionmajik says:

        Ya know, that would be an interesting statistic.
        If BOA or any bank for that matter was screwing up the same % wise in the same way pre and post bubble…

        Say if before 06 they were (and I’m going to use easy math because I can) 1,000 foreclosures a year and they messed up 1%, that would be only 10 screw ups. But with the influx, and say there were 100,000 foreclosures a year and they screwed up 1% of those. That’s 1,000 screw ups.
        Something for my mind to gnaw on…

        Granted this whole thing stinks to high heaven.

  3. Alvis says:

    If you borrowed money, PAY IT BACK, and we won’t have these problems. You need to have a foreclosure in the first place in order for mistakes to be made.

    • corkdork says:

      Umm… BoA has forclosed on people with current mortgages. People with no mortgage. People with mortgages that aren’t with BoA. Seen http://consumerist.com/2010/10/bank-of-americas-greatest-foreclosure-fck-ups.html for the highlights.

      • mrchuck85 says:

        How many millions of loans do you think BAC originates a year? Mistakes are going to happen as long as you involve humans.

        Accidental foreclosures are the minority and do you really believe anyone lost their home permanently?

        It’s SIMPLE- these people took on significant debt and couldn’t afford to repay it.

    • SolidSquid says:

      Apparently not, that’s the problem. If you look back through articles here with the “forclosures” tag you’ll find people who’ve had their houses wrongfully forclosed when they had paid the morgage off completely, or even had never had a morgage with the bank which foreclosed on them

    • IphtashuFitz says:

      Um no, you don’t. Just for a very brief list of screwups by BoA take a look at:

      http://consumerist.com/2010/10/bank-of-americas-greatest-foreclosure-fck-ups.html

      You’ve got BoA foreclosing on people with current mortgages, foreclosing on people who don’t even have mortgages, seizing the wrong house during a foreclosure, etc.

      And that’s just a few examples of one bank during a one year period.

    • the_wandering_monster says:

      Don’t feed the troll – Alvis posts this on pretty much any BoA/foreclosure article, no matter how many times it’s pointed out to them that BoA decided to have somebody turn up and break into a house where the owner’s didn’t have a mortgage, or had a mortgage which was up to date, or had a mortgage with another bank entirely…

  4. Blueskylaw says:

    “our initial assessment findings show the basis for our foreclosure decisions is accurate”

    After waiting 18 months for a mail in rebate, I will go to the company and take what is owed from their cash register and when I come before the judge I will say:

    My initial assessment for my actions shows that my decision was accurate, I just didn’t follow the law in getting what was owed me.

  5. AllanG54 says:

    But look on the bright side….60% of those foreclosures had no errors. Besides many of the others were just minor mistakes. Hell…if I owned a house and was being foreclosed upon (and I owned houses from the time I was 26 until 50) I’d have confidence the paper trail was ok.

  6. HogwartsProfessor says:

    “We are not claiming perfection, nor can we. We are committed to getting our process right and giving our customers confidence they are being treated fairly.”

    How about treating your non-customers fairly by not foreclosing on homes that don’t even HAVE a mortgage on them? Idiots.

  7. ShruggingGalt says:

    “and bank officials said they haven’t uncovered any evidence of wrongful foreclosures.”

    That’s a lie. How many foreclosures did they do where the homeowner didn’t even have a mortgage with BofA???

    That right there is a problem statement because technically, it calls anything else said to be patently untrue until proven correct.

  8. Big Cheese Make Hair Go Boom says:

    I am not trying to defend BofA or any bank for that matter…but…I can see how things did get messed up. From the furry of buying and originating crap loans over the years…think mismanaged paperwork, shady employees. I get it. They do need to do their due diligence, but…think about it this way…A massive chunk of your loan portfolio is failing, you need to go through the process of foreclosing on folks…all this happens in a matter of a few months. Yeah, HUGE mistakes are going to happen. The modern mortgage banking infrastructure was never designed to handle such losses or even deal with the actual need to boot people out of their houses.

    I am not really sure where I am going with this…but I hope you get my bizarre train of thought.

    • OneMHz says:

      Not homeowner’s problem. If they couldn’t handle the volume, they shouldn’t have made the loans. And should never have let it affect their customers, or caused them to steal houses out from under people who never were.

  9. peebozi says:

    they’re not even sure if they found errors in 10 of the first few hundred or 25 of the first few hundred they reviewed…

    holy shit, my 9 year old nephew could have kept track and he would have accepted the slave wage they would have tried to pay him!!

  10. peebozi says:

    got to agree..if you’re the company financing a majority of politicians, “oops, my bad” is an effective argument.

  11. yessongs says:

    And the Golden DUH award goes to BofA! PTHHHHHHH!

  12. dwb says:

    BofA discovered errors in 10 to 25 out of the first several hundred foreclosure cases it examined.
    I don’t get it. How could they not know how many they examined. How could they not know how many were found with errors. Is this vagueness some sort of whitewashing?