Bank of America resumes foreclosures in 23 states

By Charles Riley, staff reporter


NEW YORK (CNNMoney.com) -- Bank of America reviewed 102,000 foreclosures in the 23 states where a court must sign off on the proceedings, and it is now restarting the process on those cases, the company said Monday.

The company said the first of the new affidavits will be submitted by Oct. 25, and that it will continue its review in 27 other states.

According to a spokeswoman for the bank, no errors were found during the review, and fewer than 30,000 foreclosure sales across all 50 states will be delayed as a result of the investigation.

The announcement comes one day before the bank's third quarter earnings report, and might ease investor concerns over the scale and timeframe of the bank's review process.

"This is an even better outcome than we previously thought," said Paul Miller, an analyst at FBR Capital Markets. "We thought January was a more likely time to restart the [foreclosure] process."

The news sent Bank of America shares up 36 cents to $12.34, or 3.01%.

The bank said in a statement that the review process "has been an important step to give customers confidence they are being treated fairly."

State attorneys general have stepped up pressure on banks in recent weeks after it was revealed that some bank employees had signed foreclosure affidavits without verifying that the documents were accurate, a process known as "robo-signing."

Bank of America launched its initial review on Oct.1, and said on Oct. 18 that it was expanding its document probe to all 50 states.

The company maintained that initial assessments in the remaining 27 states show the basis for foreclosure decisions were accurate.

At least five other major mortgage servicers have announced their own document reviews.

All told, 1.8 million loans are in foreclosure in the 23 so-called judicial states, while 1.3 million are pending elsewhere in the country, according to a Morgan Stanley analyst report. To top of page

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