Monday, October 11, 2010

Bank Of America Halts All Foreclosure Sales


Bank of America is halting foreclosure sales in all 50 states as part of a widening investigation into flaws in the process, the company announced Friday.

The announcement came a week after the nation's largest bank said it was freezing home foreclosures in 23 states where foreclosures must be approved by the courts. Friday's announcement by Bank of America extends a review of foreclosure documents to all states, regardless of the required legal processes.

"Our ongoing assessment shows the basis for our past foreclosure decisions is accurate," said Bank of America (BAC, Fortune 500) spokesman Dan Frahm in an e-mailed statement. "We continue to serve the interests of our customers, investors and communities."

The announcement came two days after JPMorgan Chase (JPM, Fortune 500) said it will also halt foreclosures for about 56,000 homeowners after learning that its employees may have approved foreclosures without personally reviewing loan files.

JP Morgan Chase had no comment on Friday's announcement by Bank of America.

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