Bank of America will resume mortgage foreclosures in 23 states.

The bank, which earlier this month stopped foreclosures across the nation, announced its plans to restart foreclosure sales in nearly half of those states by October 25, which is next Monday. The 23 states in which mortgage foreclosures will restart are the territories in which foreclosures are governed by the courts. Bank of America initially suspended foreclosures in those 23 states a few days before putting a stop to all of its foreclosures. Chase Bank, PNC Bank and Ally GMAC have all stopped foreclosures in those 23 states.

This seemingly rapid timetable is good news for Bank of America, as the longer the foreclosure freeze goes on, the more money the bank loses out on. The bank reported that it had not found any improper paperwork so far. It will resume 102,000 foreclosures next week as a result of the decision.

“Our initial assessment findings show the basis for our foreclosure decisions is accurate,” Bank of America said in a statement. “Our decision to review our process and later, to extend our review to all 50 states, has been an important step to give customers confidence they are being treated fairly.”

Foreclosure Freeze Background

The foreclosure freezes first started in late September when Ally GMAC’s mortgage division stopped foreclosures in 23 states to investigate whether its employees were taking all the proper steps before making home seizures. More specifically, lawyers had uncovered potentially fraudulent measures being taken by the bank. Employees known as “robo-signers” were signing off and filing thousands of pages of paperwork they most likely never took the time to read. Banks probably resorted to robo-signing in an effort to get out from under huge backlogs of foreclosures that stacked up due to a high volume of defaults after the mortgage meltdown and financial crisis.

Ally was just the first domino to fall. Ten days later, Chase Bank stopped foreclosures in the same 23 states to investigate the same potential problems. A few days after that Bank of America halted foreclosures in those 23 states. PNC Bank followed suit later that week on the same day Bank of America curtailed foreclosures across the rest of the nation. The federal government does not support the idea of a nationwide foreclosure moratorium, but attorneys general in 50 states are taking part in a joint investigation of foreclosure practices.

Bank Of America Foreclosure Map

Here’s a list of the 23 states in which Bank of America will begin reissuing foreclosures:

Connecticut, Florida, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Nebraska, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Pennsylvania, South Carolina, South Dakota, Vermont, Wisconsin

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    • Mike

      We’re Bank of America Forclosures: Doing what we do best!

    • Mike

      We’re Bank of America Forclosures: Doing what we do best!

    • Heidi L

      When will the rest of the states resume????? California for example!!!

      • Ksiro44

        Who is anticipating resuming? Why is there nothing being done about this mess? Why are they being allowed to get away with this fraudelent crap? This whole country is going to hell!

    • Woody

      I have been going through the home modification process with B of A for about 18 mos. Now I am told it will be up to the “investors” to approve. Does anyone know if you are ever offered the chance to write a letter to the “investors?”

      • Pat

        I filed for modification in Oct. 2009 and was told by bank representative to reduce my monthly payment by $300 per month. I paid a partial paymently faithfully each month for l year. Over that year, I called the bank periodically 6 or 7 times asking whether my modification was granted. I was told to keep making my payments and that my modification application was still being reviewed. Well as of Oct. 2010, B of A still has not made a decision, but has now put my home in foreclosure. I have 90 days to vacate my home. It not right that our government does nothing about these unscrupulous bank tactics.

        • You should speak with a lawyer Pat & Woody . I’m surprised this hasn’t included California on the list, but with all the problems that state is having, I imagine they’ll be a bit still.

        • L-4327

          hello Pat
          Sorry to read about the mess you are going through with Bank of America. I Live in Tennessee and I’m going through the same thing . I have until Dec.1 to vacate because my home will be sold at auction. I was told to the same thing you were told. If you have found any help, please let me know as soon as you can.

        • EB

          This is crazy. I am experiencing the same problem. I started the modification process in October of last year. To date, nothing has been resolved. I call every week to check on the progress. They keep giving me the same response that it is with the investors. Or, they ask me to resubmit my financial information. To date, I have submitted my financial documents at least 7 times over the last 13 months. At one time, they told me the mod was approved. They even sent me a letter saying that it was approved and a document for me to notarize and sent back indicating that I accepted the mod. I returned the document and verified that they do receive it. Then, all of a sudden, they notified me that they did not receive the document from me. I am ready to contact an attorney.

          • brd

            I have a friend who is going through same hoops, smoke & mirrors with BOA. Finally he was told “investors” in his note chose not to participate in the government program. He found out the investor was LaSalle Bank (i think that’s right name). Then he finds out that LaSalle was wholly purchased and merged into BOA…so doesn’t that mean BOA is the investor? The banks are out of control, however!!!!…I do not want the government to take control…only to be sure fair and legal practices are being followed and if now…hang ’em high!