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