Bank of America: We Messed Up Foreclosures, Too

Nation's largest bank puts them on hold in 23 states
By Newser Editors and Wire Services
Posted Oct 1, 2010 6:11 PM CDT
A foreclosure sign is posted outside a home in Los Angeles.   (AP)

(Newser) – The chaos over foreclosures widens: Bank of America is putting them on hold in 23 states as it examines whether it rushed the process for thousands of homeowners without reading the documents. The move adds the nation's largest bank to a growing list of mortgage companies whose employees signed documents in foreclosure cases without verifying the information in them.

Bank of America isn't able to estimate how many homeowners' cases will be affected, but the bank plans to resubmit corrected documents within several weeks. Two other companies, Ally Financial's GMAC Mortgage unit and JPMorgan Chase, have halted tens of thousands of foreclosure cases after similar problems became public. The problems could cause thousands of homeowners to contest foreclosures that are in the works or have been completed. (Read more Bank of America stories.)

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