USA Bank stop preventing on foreclosures

BofA acknowledged that in some cases it, too, had employed so-called robo-signers who attested to the accuracy of foreclosure documents without reading them.

The bank said its review didn't find evidence of unwarranted foreclosures, so it planned to resume its takeovers of homes with properly signed affidavits in the 23 states requiring court approval.

But BofA said it would continue to conduct reviews to ensure proper foreclosure procedures were followed in the other 27 states that do not require court consent but do have rules that lenders must follow in seizing homes.

Until it is done, the bank said it would continue its moratorium in those states, but it did not indicate how long that process might take.

Reiterating that the bank had not rushed the foreclosure process, spokesman Dan Frahm said that nationwide about 195,000 BofA customers have missed more than two full years of payments.

He said the bank works "until the very last moment" to try to find ways to keep borrowers in their homes, but "the prolonged nature of the recession — and sustained high unemployment in particular — makes recovery for many borrowers unlikely."

Once its review is complete, Bank of America said it expects fewer than 30,000 foreclosure sales will have been delayed in California and the other states that don't rely on court approvals.

The Charlotte, N.C., bank said its initial assessment in the 27 remaining states was producing the same findings as in the court-order states — "the basis for our foreclosure decisions is accurate."

"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," the bank said.

Chase also has said it expects to complete its review and fix flawed paperwork in the judicial foreclosure states in weeks, not months. The New York bank has expanded its review of foreclosure procedures to 41 states. It wasn't clear whether California was among them
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