Mortgages Blog

Finance Blogs » Mortgages » Bank of America resumes foreclosures next week

Bank of America resumes foreclosures next week

By Holden Lewis · Bankrate.com
Monday, October 18, 2010
Posted: 3 pm ET

Bank of America says it will resume foreclosures in at least 23 states, starting next week.

BofA, the largest mortgage servicer, has suspended foreclosures nationwide as it reviews its processes for repossessing houses. In the 23 judicial foreclosure states, the bank is getting ready to resubmit affidavits in 102,000 foreclosure cases. In a statement, the bank says it will start filing those amended affidavits next Monday.

"We will continue to delay foreclosure sales in the remaining 27 states until our review is complete on a state by state basis," spokesman Dan Frahm says in the statement. "We anticipate over the course of this pause, less than 30,000 foreclosure sales will have been delayed. As was the case for our judicial state review, our initial assessment findings show the basis for our foreclosure decisions is accurate."

What does that mean, exactly? My guess is that BofA is saying that it might have submitted faulty affidavits to courts -- robosigned or postdated or whatever -- but only for loans that truly were delinquent long enough to merit foreclosure.

No doubt some borrowers and their attorneys are getting ready to pounce on resubmitted affidavits as evidence of unacceptable corner-cutting.

«
»
Bankrate wants to hear from you and encourages comments. We ask that you stay on topic, respect other people's opinions, and avoid profanity, offensive statements, and illegal content. Please keep in mind that we reserve the right to (but are not obligated to) edit or delete your comments. Please avoid posting private or confidential information, and also keep in mind that anything you post may be disclosed, published, transmitted or reused.

By submitting a post, you agree to be bound by Bankrate's terms of use. Please refer to Bankrate's privacy policy for more information regarding Bankrate's privacy practices.
4 Comments
Holden Lewis
October 26, 2010 at 2:12 pm

I suggest two ways to tackle this. Strategy 1: Call the bank, and request that your call be transferred to the loss mitigation department. You've probably been talking to the collections department. All they do is persuade you to send in a check; they can't negotiate a loan modification or other type of workout. That's what the loss mitigation department does. Tell the collections department that you will default imminently and you wish to talk to someone in loss mitigation.

Strategy 2: Contact a HUD-licensed housing counseling agency and ask them to work as a liaison between you and the bank. This strategy probably has a higher chance of success.

Riichard
October 26, 2010 at 8:56 am

Two years ago i was going to do a chapter 13,But two days before court i lost my job. We had to change to chapter 7 with house in it. When we went to court the courts did not want the house. So after that i contacted the bank to see if we could work together to save my house. I was behind in payments and they said we will work with me. I sent in a payment and they sent it back saying need a certified check, so got one sent it in they returned it saying they want full payment of back payment. I have checked with other banks to refinance and other people,and they say can not do anything.
Want else can I do?