Banks Halt Foreclosures as Procedures Investigated

Posted on October 08 By Francine Huff

Four major banks have halted foreclosures amid a probe of procedures used for processing documents. Questions and concerns have been raised about whether or not bank officials improperly signed and processed foreclosure documents without reviewing the information.

Bank of America, which previously halted foreclosures in certain states, said in a statement:

"Bank of America has extended our review of foreclosure documents to all fifty states. We will stop foreclosure sales until our assessment has been satisfactorily completed. Our ongoing assessment shows the basis for our past foreclosure decisions is accurate. We continue to serve the interests of our customers, investors and communities. Providing solutions for distressed homeowners remains our primary focus."
Other banks that have halted foreclosures in 23 states include JPMorgan Chase, Ally Financial's GMAC Mortgage Unit, and PNC Financial Services. According to the New York Times, PNC Financial has suspended sales of foreclosed homes for 30 days and is reviewing its mortgage servicing procedures.

Attorneys general in several states are investigating the banks' handling of foreclosures, and other lawmakers and consumer advocates are calling for investigations. Will there be more banks joining those already being investigated?

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