Bank of America announced today that they too will halt foreclosure proceedings, as information came to light about the use of so-called robo-signers in the processing of mortgage documentation. BofA’s move comes among increased political pressure by lawmakers to suspend foreclosure proceedings.
According to The Wall Street Journal’s brief initial report, it seems that Bank of America’s moratorium may go even farther than the foreclosure suspension at J.P. Morgan and Ally Financial announced last week. Initial reports indicate that BofA will be halting all of its foreclosure — not just foreclosures in the 23 states where a court’s approval is required to foreclose on a home. In the same WSJ report, reference was also made to BofA suspending "sales across the U.S."
Calls to BofA to validate the extent of the moratorium were not immediately returned.
"The probability of procedural flaws at other institutions can only be guessed at — but it certainly seems possible that other overwhelmed lenders, faced with a rising tide of foreclosure volume, may have resorted to similar procedural tactics to expedite their documentation process."
Then I asked: "Who's next?'
I guess we have our answer.
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