A news report about Bank of America’s suspension of foreclosures in non-judicial states has it wrong, according to the bank.
In early October, 2010, BofA announced it would stop foreclosure sales in the 23 states that require judicial foreclosures. The move was made to “amend all affidavits in foreclosure cases that have not yet gone to judgment.”
Within a week, the suspension was expanded to all 50 states — including those that do not require foreclosures to be processed through the court system.
By December, the suspension was lifted as the bank said it had made improvements to its process.
“As Bank of America announced in December, home foreclosures are underway in both judicial and non-judicial states when it has been determined that a loan modification cannot be successfully completed,” a statement today from a BofA spokesman confirmed. “The foreclosure process was restarted after a review of procedures including notices of default in non-judicial states.”
But CNBC cited sources in a news report Tuesday indicating that notices of default have dropped “dramatically since October” and suggesting moves like BofA’s were a factor. The story pointed to a possibly growing NOD scandal.
Despite that Frahm reportedly told CNBC, “I feel good knowing we addressed NOD as part of our rigorous voluntary review and testing process,” CNBC suggested that faulty default notices were what prompted the Charlotte, N.C.-based institution to suspend foreclosures in the non-judicial states.
The bank, however, disagrees.
“They are trying to make a connection that’s not there,” Frahm said in a written statement to MortgageDaily.com. “Our process is underway.”
He added that “moving through the foreclosure backlog is a critical step to restoring the housing market and the nation’s economy.”
