Bank of America delays foreclosure in 23 states

October 3rd, 2010 - 8:22 pm ICT by Aishwarya Bhatt  

Oct 3 (THAINDIAN NEWS) The Bank of America has announced that it is delaying foreclosures in 23 States in the United States to examine whether it rushed the process for thousands of homeowners in the affected States. The bank says it will determine whether it proceeded with the process without going through the documents associated with them.

Employees of several American banks and mortgage companies went ahead and signed documents in foreclosure cases without checking the information in them and it seems employers of America’s biggest bank were also doing just that.

The bank currently cannot put an estimate on how many cases of foreclosures will be affected but a spokesman for the bank, Dan Frahm says the bank plans to resubmit the corrected documentary within several weeks. Two other financial giants, GMAC Mortgage of Ally Financial Inc and JPMorgan Chase have all recently halted several thousands of foreclosures because of similar problem with document verification.

Thousands of homeowners can contest impending foreclosures or even completed once because of the problem with the document verification. However analysts believe that nonetheless most homeowners facing foreclosures will eventually end up losing their homes, though litigation can drag the process for a long time.

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