PNC Bank plans to resume mortgage foreclosures with “enhanced procedures,” according to a regulatory filing by the bank.

PNC ForeclosuresThe quarterly filing to the Securities and Exchange Commission outlined the problems the foreclosure industry has faced and announced that PNC’s foreclosure system is “designed to ensure that no foreclosure proceeds unless the loan is genuinely in default.” The bank noted that most of the foreclosures it performed were on properties in default for longer than one year and that the bank held a foreclosure market share of less than 2%. PNC originally put a halt to foreclosure filings early last month.

The bank is still evaluating foreclosures that were in the filing process when the foreclosure freeze hit, but it is proceeding with new foreclosure seizures. Attorneys general in all 50 states are currently participating in a joint investigation of banks’ foreclosure practices.

“We are currently proceeding with new foreclosures under enhanced procedures designed as part of this review to minimize the risk of errors related to the processing of documentation in foreclosure cases,” PNC said in a statement.

Foreclosure Crisis Recap

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.

Did you enjoy this article? Yes No
Oops! What was wrong? Please let us know.

Ask a Question

  • Ron

    Anyone here about when they will lift the freeze and complete sales of existing REO inventory that are in escrow?

  • Ron,

    PNC’s regulatory filing only specified the bank would restart new foreclosure filings. The paperwork did not specify when the bank would resume with existing foreclosures affected by the freeze.

    Thanks for reading and contributing.

  • Makaveligh

    Well I’m in a similar situation. I’m currently purchasing a home from PNC that was foreclosed on and it’s been pure hell trying to figure out what is on and when are we going to close.

  • Bmjohnso

    Same here, just signed another 30 day extension today. Livin life 30 days at a time thanks to PNC. Looking for all the information I can find so I can maybe see a light at the end of the tunnel. Has anyone heard anything new?

  • Truthseeker

    Wow — So there are others out there like us. And it’s strange how silent the news media is on this. PNC seems to be the only bank that has not officially opened up to resume sales on previously foreclosed properties. We are still waiting to buy a house in which the original (one and only) owners walked away on the loan (with permission from the bank) in summer of 2009. So a very clean “foreclosure”. We submitted an offer in summer of 2010 that was accepted by PNC bank. But then before we could close, PNC put in the moratorium. Now here we are months and months later, continuing to send in extensions to accommodate the silence of the bank, and still no word on when they will actually sell the house to us. This is a half a year later from when we put in our offer! Help! Why isn’t anyone talking about this? Where is the news media coverage? Where is the word from the bank that they are going to sell the foreclosures from 2 fiscal years ago? Why do they keep paying to maintain these non-performing assets? Not making sense.

    • Credq

      Same boat here. Went looking for any updated news and stumbled upon these comments. I’m kicking myself for trying to save $2,000 bucks on a house and having the close date move from late September to middle October, and having the house freeze on the market. My friends on the other hand were able to bid and close on a house last month.

      • Ruggerjb

        Right there with ya. Our contract date was Sep 7, and they STILL say they are on hold. We get ZERO communication, other than “we are on hold”. In the meantime they draw interest on my earnest and the houses radiant heating system freezes up. They don’t seem to be concerned one bit whether they sell and agents on both sides have been ZERO help. Now we need a new appraisal…..SERIOUSLY!?!?!?!?

  • mike

    when you deal with PNC you are getting screwed, or will be just sit back and see

  • Deerbuster69

    read all you can about this bank before you deal with them! they will put a stick in your side and break it!

  • jya

    Its all those cheats who dont want to pay due mortgages who should be brought to justice. There are a lot of garbage defenses put forward including standing which dont make sense and the crooks keep not paying the mortgages, live free, dont pay taxes or utility bills…..and in the end we honest folks pay for all those misdeeds. A better approach would have been a Resolution Trust Type organization so that foreclosures can be completed quickly, inventory moved and the nation can start rebuilding. There are too many freeloaders in the society now a days