The nation's largest bank, Bank of America, stopped sales of foreclosed homes in all 50 states today, a sign that the growing crisis in the real estate industry over flawed foreclosures is worsening.But wait, I thought the recession ended in June of 2009. How can this be that foreclosure crisis is worsening?
Bank of America executives said that the decision will allow them to review the documents that it uses to process foreclosures. Just a week earlier, they halted sales of foreclosed homes in 23 states.
"We will stop foreclosure sales until our assessment has been satisfactorily completed," Bank of America spokesman Dan Frahm said in a statement. "Our ongoing assessment shows the basis for our past foreclosure decisions is accurate."
Bank of America is not alone. Today, PNC Financial Services Inc, said that it will halt most foreclosures and evictions in 23 states for a month to review their documents.
- ABC News
The answer, it seems may not be directly related to the recession, but rather forged documents to obtain many of the mortgages, that are now being forclosed upon.
In recent days major lenders--including JPMorgan Chase, Ally Financial's GMAC Mortgage unit and Bank of America--have conceded that paperwork supporting an unknown number of foreclosures contain errors ranging from wrong dates to forged or inconsistent signatures. In many cases, mortgage company employees signed foreclosure documents without first verifying the information in them.
- ABC News
It seems, the executives signed thousands of foreclosure documents without reading them first. Folks, it's not just Congress, it's these banking executives also. No wonder banks don't want someone like me. They don't want the good honest people, that would read the documents first. But, I digress.
A document obtained last week by the Associated Press showed that one Bank of America official acknowledged in a legal proceeding that she had signed thousands of foreclosure documents a month. The official, Renee Hertzler, said that she signed 7000 to 8000 foreclosure documents a month and typically didn't read them.Senator Dodd has vowed to make a Congressional inquiry into this matter. Really? How is a governmental body, known for it's sloppiness in not reading bills before they are passed, going to investigate the banking industry for doing the same thing?
Whether sloppiness or deceit is the greater culprit remains to be determined.
Senator Christopher Dodd, chairman of the Senate Banking Committee, said that he will hold a hearing on the issue next month.
- ABC News
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