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.