BofA Puts Freeze on Evictions

With so many homeowners across the country in danger of losing their home through foreclosure, Bank of America has found a heart and decided to put a freeze on evictions for the time being in many areas of the nation.

Of course, as with any major decision like this, it’s not all about what is better for the consumer. The bank has said that it was concerned that some of the paperwork was not handled properly in many foreclosures so now evictions for those who are affected by the paperwork in 23 states have been halted for the time being. The reason the freeze is only taking place in 23 states is because those are the states where a court order is needed in order to foreclose on a home. However, lenders are feeling the pressure of putting evictions and foreclosures on hold for all 50 states as unemployment continues to be a major problem.

But BofA isn’t the only mortgage lender that has put a moratorium on evictions recently. Ally Financial Inc. in Detroit has decided to freeze evictions in 23 states, but that was also because of paperwork what may not have been handled correctly. The head of that financial institution’s document processing team stated that he signed numerous affidavits stating that the paperwork for foreclosures was done correctly, but he also said he didn’t read the documents beforehand. Chase has also halted foreclosure proceedings due to similar circumstances.

As for Bank of America, the foreclosure process is simply being delayed right now until the affidavits for foreclosure cases have been amended. This will only be good for those that have not already gone to judgment in those 23 states where the freeze is being done. BofA has not mentioned how many borrowers will be affected by the freeze, but those who are affected will surely enjoy their reprieve.

Jerry Brown, the Attorney General in California, wants to be sure the banks are going by the letter of the law in his state when they foreclose on a property. He would also like to require lenders to help homeowners understand their options regarding loan modifications and other ways to help them afford their monthly payments before evicting them from their homes.

Wells Fargo, the largest bank in the state of California, is the leader in mortgage originations. Officials with that bank said that the affidavits they have signed are accurate, but would not say certify that they are all signed properly.