Bank of America Halts Foreclosure Process in 23 States
It looks like Bank of America jumped the gun by rushing the foreclosure process in thousands of cases. Court documents show that there are perhaps hundreds of thousands of cases where the person signing the documents didn’t verify the information needed to finalize the procedure.
In one such instance, a Bank of America official acknowledged signing up to 8,000 foreclosure documents a month. The official, Renee Hertzler, stated, “I typically don’t read them because of the volume that we sign.” Diane Thompson, counsel at the National Consumer Law Center, said “The general level of sloppiness is pervasive around the industry.”
Bank of America neglected to follow the lengthy court process that is mandatory within the following states:
13) New Jersey
14) New Mexico
15) New York
16) North Dakota
20) South Carolina
21) South Dakota
Other banks halting foreclosure processes include Ally Financial Inc.’s GMAC Mortgage unit and JPMorgan Chase.
The Treasury Department has asked federal regulators to look into the accusations, asking seven large banks to examine the current foreclosure process.