The faulty foreclosure mess has officially taken over all 50 states, as Bank of America announced on Friday its plan to extend its foreclosure postponements to all 50 states. The move will take effect starting Saturday, October 9.
Bank of America, one of the worlds largest financial institutions, has folded under pressure as politicians have gotten involved with the foreclosure issues. Bank of America first went public with its decision to halt mortgage foreclosures earlier this week, putting a clamp on seizures in 23 states.
The problem, stemming from banks’ possible failure to closely review foreclosure documents — a legally enforced step in the process — is not unique to Bank of America. Chase, as well as GMAC Ally and PNC have stopped home seizures in states across the U.S. According to multiple reports the banks were having their officers sign off on thousands of foreclosure documents each month without even bothering to read through necessary paperwork.
This probably won’t be the end of the industry’s mess, as real estate lawyers and other attorneys are trying to untangle property rights and blighted titles. Additionally, these mistakes have the potential to result with unfair displacements of families in previously seized homes. The fees associated with relocating and lawyers alone will negatively impact individuals’ budgets. Politicians are beginning to get involved have not put forth a plan to solve these home seizure mistakes.