BofA halts US foreclosure sales

October 08, 2010 03:00PM

Bank of America is stopping all foreclosure sales and proceedings in all 50 states, it said today, though it’s unclear how this action will impact homeowners who are currently negotiating with their lender, Crain’s reported, though experts told CNBC, in the video above, that it’s bad news for the housing market. The Charlotte, N.C.-based bank — the largest in the country — decided to halt foreclosures, following JPMorgan Chase and GMAC Mortgage’s freezing of foreclosures last week to examine what it has been shown to be a flawed process for documenting and filing foreclosures. “We will stop foreclosure sales until our assessment has been satisfactorily completed,” BofA said in a statement. The halt in foreclosures comes amid reports that banks have used so-called “robo-signers” to sign hundreds of documents and affidavits used to foreclose on a home without reviewing them. In New York, where foreclosures need to be approved by a judge, these documents are crucial because most properties have securitized loans with multiple stakeholders. [Crain’s]