Bank of America has been trying to put its mortgage distresses behind them but a crucial $8.5 billion settlement with investors may play a role in pushing foreclosure rates up.
Last week, Realty Trac released statistics that showed initial default notices rose 33 percent in August. This is the highest monthly increase since 2007, when the housing market took a downturn.
Now a preliminary analysis has found that the largest acceleration of those foreclosures came from Bank of America. In one California community, foreclosures rose by 96 percent.
Challenging a default is possible by hiring a foreclosure attorney.
Bank of America has stated that clearing out its foreclosure backlog will lead to recovery in the housing sector. As part of the $8.5 billion settlement with investors, who allege that BofA sold them low quality investments based on faulty mortgages, they must clear out their back log of defaulted loans and foreclosures.
Consumer advocates say the Bank of America and other mortgage lenders are edging up foreclosures without straightening up their careless foreclosure practices. Shoddy paperwork has driven many homeowners, who are being wrongfully put into default, to a foreclosure lawyer.
Spokesman for Bank of America, Richard Simon has stated that the increase on foreclosures is not being caused by the settlement and insists they have cleaned up their paperwork practices.
The sloppy paperwork practices is one contributing factor to the current housing crisis, unemployment and home depreciation are other causes. Employing a foreclosureattorney is crucial for the homeowner who wants to explore all the options available to help them stay in their homes.
