Smart Borrower Blog

Bank of America Admits Finding Mistakes in Foreclosure Documents


Oct 25th, 2010 @ 5:37 AM by Debbie Dragon


Just one short week after Bank of America started examining foreclosure documents, they are owning up to finding errors. The company so far has looked at not even 1% of the cases they must review, but in those they have reviewed, they have found somewhere between 10 and 25 errors. The mistakes range from misspelling of names to wrong addresses to missing signature and even missing files, but so far the bank is claiming none of the errors would have led to wrongful foreclosure procedures.

While the mistakes found so far would most likely not have resulted in faulty foreclosures, Bank of America along with other big mortgage lenders in the industry are facing serious accusations that they have not been following proper measures during foreclosure proceedings. In fact, attorney generals in all 50 states have joined forces and are investigating Bank of America along with Wells Fargo, JPMorgan Chase and others. The investigation is looking into whether or not these banks have been evicting homeowners erroneously without proper documentation or proper signatures and in some cases, with potentially falsified documents.

In reaction to the investigation, Bank of America along with other lenders recently halted foreclosures in an effort to cooperate with the investigations.

Bank of America has been asked to verify that 102,000 of their foreclosure cases were indeed legally executed. The cases are spread out in 23 different states. They must resubmit these cases to the courts showing that their foreclosure process is fair and that they did not simply push paperwork through, foreclosing on homes without first taking the time to thoroughly review each case.

While Bank of America does seem to be the bank being most scrutinized, it should be expected since they are the #1 lender in the country. They currently hold about one in five of all American mortgages. Up until now the bank has claimed no wrongdoing and has denied that there were any mistakes in their foreclosure proceedings. It seems after last week’s discoveries that they have changed their tune just slightly.

Bank of America spokesman Dan Frahm told Reuters: “We are not claiming perfection, nor can we. We are committed to getting our process right and giving our customers confidence they are being treated fairly.”

About Debbie Dragon
Debbie Dragon is a full time freelance writer and the co-owner of ReliableWriters.com.

4 Responses to “Bank of America Admits Finding Mistakes in Foreclosure Documents”

  1. Kevin Benner says:

    This is a nightmare no matter which way you look at it. The banks pushed through paperwork trying to make or save a buck but that doesn’t change the fact that most of these homeowners are behind on their mortgages. A combination of high unemployment, an increasing number of under water homes and tighter lending standards is making more and more people find out that their pride and joy has turned into a giant ball and chain they are forced to drag along with them. It may take years for the dust to settle on this problem but can the housing market truly begin to recover until it does?

  2. Rany says:

    With regards to BOA not making mistakes in forclosure? I am a single mom with 4 kids, one who at the time came down with epilepsy, I lost my job and was on unemployment for over a year, When I finally got a job and requested the assistance from the Mediation program to apply for the Obama program. When I finally went to the mediation, I had a lawyer from the HUDD office, a lawyer from BOA and a mediator, BOA (who was on the phone) and BOA lawyer told us that I DIDN’T qualify for the Obama program and that I needed to show more income and THEY WOULD WORK WITH ME. So I them had to come back to mediation, with my HUDD Lawyer, same mediator and a different lawyer representing BOA, (prior one no longer worked for firm). This lawyer had not received the contract on a piece of land I rented out to a company for storage of their equipment. So I presented this to them and they stated I still didn’t show enough income, and if I could show more THEY WOULD WORK WITH ME. So I moved my daughter into my room and rented a room out to a guy who had just come back from Irac. This time we didn’t have to go back to mediation just forward the contract to my lawyer and he forwarded it to BOA lawyer. The lawyer who was at the second mediation was no longer working for the firm. So we now had a new representing lawyer. The lawyer was to talk with BOA and notify us if it was enough to work with me as they kept saying they would. I had to go infront of judge to stop the sale a couple times, due to no reply from BOA, the last time they never notified us and sale (forclosure) went through and I received a certified letter of sale, the day after the sale. Now I rent my own house from new owner. So who is at fault??

  3. Garcia says:

    We got a loan modification about a year ago . We were on the trail payment for about a year and three months ago Bank of America told us that our first payment was due on march 2011. That our trail payments cover our mortgage until march 2011. That we didn’t have to pay Nov, Dec,Jan. We have documents stating this..We call Bank America and they told us the same thing. My husband check our mortgage status and it shows that we are Now three months behind and they want the money for the last three months, after they told us and verified the documents we got in the mail were correct.My husband called Bank of America and asked them what is going on? they told him they have made a mistake on there side . I am so upset because we could lose our home. We don’t know what to do… I need some advice.:(

  4. The very root of your writing while sounding reasonable at first, did not really settle properly with me personally after some time. Somewhere throughout the sentences you were able to make me a believer but only for a very short while. I still have a problem with your leaps in logic and one might do nicely to fill in those gaps. In the event you can accomplish that, I would undoubtedly end up being impressed.

Leave a Reply