Bank America and JP Morgan "extend (now suspend) and pretend"


#1

Curious to get your take on Friday’s (10/1) announcement by Bank America that they will be joining JP Morgan Chase and Ally Financial in their “temporary” suspension of foreclosure proceedings in 23 states (wherein foreclosures are handled by courts). Their stated reason was apparent sloppy work on processing of foreclosures. The press is highlighting “robo-signers” … middle managers who signed-off on but never looked at docs & affidavits and related foreclosures.

Seems to me that lenders’ mortgage-servicing units as a group are woefully understaffed, under-trained and poorly supervised. It’s probably fantasy to hope that the “keystone cops” foreclosure processors will ever get their act together. A simple thing like posting an opening bid 24 hours in advance of the steps sale would go a long way towards advancing sales to 3rd party investors.


#2

Following is a table of the affected states:

Connecticut
Florida
Hawaii
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Nebraska
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Pennsylvania
South Carolina
South Dakota
Vermont
Wisconsin


#3

You’ll find my take here: http://www.foreclosuretruth.com/blog/sean/free-homes-unlikely-more-foreclosure-delays-absolutely/. Definitely read the comments too. The Old Republic bulletin is troubling.


#4

Thanks for the link and info … looks like Bank of America has now expanded their “temporary suspension” of foreclosures to all 50 states. Several of my targeted properties have Recontrust as the current trustee of record but show a different lender (not BoA). Does Recontrust represent BoA exclusively? Or do they handle other lenders too?


#5

Hi Danny, ReconTrust is a member of the Bank of America family of companies. Unless BofA is a servicer of a loan from another investor ( e.g. Suntrust, Fannie, Freddie) they only appear to represent B of A and BAC foreclosures. Although we know that this is now affecting all 50 states we do not believe that this will have a long term affect on the non-judicial foreclosure states and we will continue to see a trickle of properties go to sale as they review the documents.


#6

Which may include Countrywide.