Bank of America will start resubmitting paperwork on Oct. 25 that will put an end to its foreclosure halt in 23 states.
The nation's largest bank said Monday that it will be ending its foreclosure suspension in 23 states, which has been in place since Oct. 8 when news of gross violations of foreclosure laws by the banking giant, among others, first emerged.
Attorneys general of all 50 states are conducting an investigation into these claims that raise serious questions about the foreclosure procedures adopted by the country's largest banks.
BofA will restart foreclosure sales in 23 states where court approval is required to foreclose on a home and after the paperwork goes through detailed checks. The bank will continue suspending the foreclosure sales in the 27 states and the District of Columbia where no such action is required. The bank is currently reviewing the foreclosure documents in these states and said the process will take several weeks.
The foreclosure freeze was announced Oct. 8 after reports of forged documents, faulty notarizations and "robo-signers" – bank officials who signed off thousands of documents each month without reviewing the details – caused a major controversy.
BofA spokeswoman Jumana Bauwens said the foreclosure decisions made by the bank were accurate.
The bank will file new foreclosure paperwork in 102,000 cases starting from Monday and it could take several weeks before the process is completed. BofA is set to announce its earnings for the third quarter early Tuesday.
BofA stocks closed at $12.34, up 36 cents, or 3 percent, on Monday.
