Bank of America halts foreclosures in 23 states

By Hibah Yousuf, staff reporter


NEW YORK (CNNMoney.com) -- Bank of America is the latest in a string of banks to freeze home foreclosures in 23 states as it investigates whether there were flaws in its process.

"We have been assessing our existing processes," Bank of America said in a statement. "To be certain affidavits have followed the correct procedures, Bank of America will delay the process in order to amend all affidavits in foreclosure cases that have not yet gone to judgment in the 23 states where courts have jurisdiction over foreclosures."

States under BofA review
Connecticut Delaware
Florida Hawaii
Illinois Indiana
Iowa Kansas
Kentucky Louisiana
Maine Nebraska
New Jersey New Mexico
New York North Dakota
Ohio Oklahoma
Pennsylvania South Carolina
South Dakota Vermont
Wisconsin

Bank of America (BAC, Fortune 500) did not have an estimate of the number of homeowners that will be affected by the delayed process.

The announcement comes two days after JP Morgan Chase (JPM, Fortune 500) said it will also halt foreclosures for about 56,000 homeowners after learning that its employees may have approved foreclosures without personally reviewing loan files.

A Chase spokesman said it is working with outside counsel over the next few weeks to review its process to confirm that it meets the appropriate standards.

Last week, Ally Financial, previously known as GMAC, the finance arm of General Motors, said it will also pause foreclosures in the 23 states.

Mortgage lender Freddie Mac said Friday that it is "deeply concerned" with the recent reports and said the alleged practices are not in compliance with its guidelines.

"We expect to provide instructions to our servicers later today that are intended to ensure that their foreclosure processes are in compliance with state law and Freddie Mac's servicing requirements," the lender said in a statement. "It's essential that the industry work together to protect borrowers' rights and ensure the integrity of the foreclosure process." To top of page


Overnight Avg Rate Latest Change Last Week
30 yr fixed4.04%4.16%
15 yr fixed3.15%3.15%
5/1 ARM3.13%3.15%
30 yr refi4.15%4.23%
15 yr refi3.26%3.22%
Rate data provided
by Bankrate.com
View rates in your area
 
Find personalized rates:
  • Find Homes for sale
    Real estate and homes for sale on Trulia

  • Property Type
  • Find a home in: New York | Atlanta | Chicago | Los Angeles
  • Washington D.C | Houston | Philadelphia | More options
Index Last Change % Change
Dow 17,440.59 -127.94 -0.73%
Nasdaq 5,039.78 -48.85 -0.96%
S&P 500 2,067.64 -12.01 -0.58%
Treasuries 2.23 -0.04 -1.89%
Data as of 1:58am ET
Company Price Change % Change
Bank of America Corp... 17.67 -0.23 -1.28%
Freeport-McMoRan Inc... 11.37 -0.92 -7.49%
AT&T Inc 34.32 0.03 0.09%
Apple Inc 122.77 -1.73 -1.39%
Ford Motor Co 14.55 0.16 1.11%
Data as of Jul 27

Sections

Chrysler owners that haven't fixed their recalled cars are eligible for some incentives -- find out if your car is included. More

China's market is spreading investor anxiety around the world and putting Europe -- its biggest trading partner -- on edge. More

Google is scaling back its unpopular social network integrations, starting with YouTube comments. More

NASA has teamed up with Freelancer.com to crowdsource tools for Robonaut 2, its first humanoid robot in space. More