GMAC, BofA Restarting Foreclosures

Two vast banks at center of crisis find no significant problems
By Polly Davis Doig,  Newser Staff
Posted Oct 19, 2010 9:17 AM CDT
GMAC, BofA Restarting Foreclosures
Home and auto lender GMAC Financial Services today moved to restart foreclosures, joining Bank of America.   (AP Photo/Paul Sakuma, file)

Bank of America and GMAC, two huge players in the mortgage crisis, are moving to resume foreclosures, effectively ending a self-imposed moratorium meant to give them time to look for errors, the Wall Street Journal reports. A BofA spokesman said the bank would resubmit paperwork for 102,000 cases by Monday and that so far "no cases" of improper foreclosures have been found. The number of GMAC cases involved was unspecified.

"This is an important first step in debunking speculation that the mortgage market is severely flawed," the BofA spokesman said; BofA's foreclosures affect 23 states, and should resume in November. The Journal notes, however, that by resuming foreclosures, the two banks are headed for a showdown with state attorneys general.
(More Bank of America stories.)

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