Bank of America expected to lift foreclosure freeze

The nation's largest lender intends to end a moratorium on foreclosures, which could allow a number of homebuyers in limbo to resume their moving plans.

Weeks ago, Bank of America became the first of a handful of lenders to suspend foreclosure sales in all 50 states while it worked to perform an internal review of its foreclosure procedures. The decision came after a national controversy erupted when a number of lender employees reportedly admitted signing foreclosure documents without properly reviewing their contents - potentially compromising thousands of foreclosure sales around the country.

This week, the company announced that it had completed its internal review and that sales in the 23 states that require court approval for foreclosure sales would continue next Monday, when it plans to resubmit affidavits for 102,000 pending foreclosure judgments. Foreclosures in the other 27 states won't be far behind as the company continues state-by-state reviews.

"As was the case for our judicial state review, our initial assessment findings show the basis for our foreclosure decisions is accurate," said company spokesman Dan Frahm.

The company said that less than 30,000 foreclosure sales were delayed during the review process.

Many more homebuyers who purchased distressed properties nationwide feared their moving plans would be halted for an extended period of time during the reviews. Additionally, the controversy spurred rumors of another potential federal bailout, similar to the Wall Street bailouts of a few years ago, reported ABC News.
 

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