Finally, there is some good news on the Foreclosures Gone Wrong front. On Thursday, October 7th, President Obama vetoed a bill to speed up foreclosures given the flaws in the foreclosure process. On October 8th Bank of America, the nation’s largest bank, announced that it would halt foreclosure sales in fifty states.
“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.”
Now it will be interesting to see whether Ally Financial and JPMorgan Chase will follow suit, since the flaws in the foreclosure process have been widespread across different financial institutions.
WSJ’s Rick Brooks discusses Bank of America’s decision and the state of foreclosures in the WSJ.com video below:
Do you think other banks will follow Bank of America and stop foreclosure sales across all fifty states?