Bank of America has extended its freeze on home foreclosures to all 50 states as it sorts out the claims that homes have been taken without property documentation and processes.
That's great news for homeowners facing sale dates and still struggling with loan mods and short sales. The delay, even if it's only a few weeks, could be the extra time necessary to complete their current deals.
“We have a lot of people raising questions,” Bank of America Chief Executive Officer Brian T. Moynihan told Bloomberg News on Friday in an interview in Washington before a scheduled speech to the National Press Club. The review “will take a few weeks” and is an effort “to clear the air,” he said.
Here is a link to the report at Bloomberg.com.
Bank of America, JPMorgan Chase & Co. and Ally Financial Inc. previously put moratoriums on foreclosures in 23 states after allegations arose about "robo-signings" of foreclosure paperwork without proper authority. Bank of America is the first company to extend the ban to the entire nation. Many are calling on all banks to follow suit, and it's likely many will follow through.
This is a short window of opportunity for short sale agents to push through deals that are near foreclosure.
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