Follow-Up on Foreclosures 

Thursday, October 7th, 2010

You may recall reading about Jason Grodensky a couple weeks back, who had the misfortune of having his home foreclosed upon by Bank of America, despite the fact that he had purchased the house outright. Shortly after this fiasco was exposed, Bank of America announced that they were halting foreclosures in 23 states. Why? They need to determine if they rushed the foreclosure process without even reading the relevant documents.

So, why only 23 states? From the article:

In some states, lenders can foreclose quickly on delinquent mortgage borrowers. By contrast, the 23 states in which Bank of America is delaying foreclosures use a lengthy court process. They require documents to verify information on the mortgage, including who owns it.

Requiring documents to verify the validity of the mortgage – imagine that. Predictably, the banks are already working to ruin this improvement.


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