Bank of America said Friday that it will stop sales of foreclosed homes in all 50 states as it looks into reports that mortgage servicers signed foreclosure documents without reading them, a practice known as “robo-signing.”
The company 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 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.”
The Wall Street Journal reports:
The bank doesn’t intend to lift the moratorium on foreclosure sales until its assessment is complete, a spokesman said. The bank hasn’t halted all foreclosure proceedings, however. If a borrower is delinquent, the bank is still issuing notices of default and pursuing efforts to modify certain mortgages, the spokesman said.
Earlier this week, the NewsHour looked at the issue of “robo-signing”‘ foreclosure documents.
Paul Solman’s working on a series of reports on the foreclosure crisis. Read a preview here.
This post was updated at 1:30 p.m. ET
*For the record, Bank of America is a NewsHour underwriter.