• In the Spotlight:
Join the Meeting Place for Moms!
Talk to other moms, share advice, and have fun!

(minimum 6 characters)

Bank Of America Foreclosure Notices Reportedly Spike In August

Posted by on Sep. 14, 2011 at 12:08 AM
  • 1 Replies

Bank Of America Foreclosure Notices Reportedly Spike In August

Bank Of America Foreclosure

Nearly a year after announcing plans to haltforeclosures in all 50 states, Bank of America reportedly is ramping up foreclosures of delinquent homes in a move that other banks may be paralleling.

Bank of America sent more than twice as many notices of default to homeowners in August as in previous months, CNBC reports. A notice of default marks the first stage of the foreclosure process in states such as California and Nevada, where foreclosures do not go through a judge.

If the number of foreclosures continues to rise as the robo-signing scandal subsides, the influx of discounted foreclosed homes on the housing market could drive down housing prices and weigh on the general economy.

Bank of America could be only one of many banks foreclosing on homes that were delinquent but not taken away this past year, since a number of major banks halted their foreclosures last fall once it came to light that they had used shoddy mortgage paperwork to foreclose on homes. Banks foreclosed on fewer properties earlier this year largely because of processing delays, as banks sought to put their mortgage paperwork in order after the robo-signing scandal came to light last fall.

Now, the number of homeowners who owe more than their property is worth has declined. But that's because banks have increased foreclosures of those properties, according to a CoreLogic report released on Tuesday.

Bank of America has been plagued by a barrage of lawsuits and a plummeting stock price. The bank has suffered from a 50 percent drop in its stock price this year, and it recently announced plans to cut 30,000 jobs in an attempt to help balance its tumbling balance sheet. The Federal Housing Finance Agency has sued Bank of America for alleged fraud, insisting that the bank buy back a portion of more than $50 billion in mortgage-backed securities. AIG has sued Bank of America for $10 billion with claims that the bank sold them residential mortgage-backed securities that were overvalued.

Gus Faucher, director of macroeconomics at Moody's Analytics, said he expects that as more foreclosed homes enter the market, housing prices are likely to decline for the rest of the year. He added that since consumers who feel less wealthy are likely to spend less, lower housing prices coupled with lower stock prices could contribute to a double-dip recession.


"Given the weakness in the economy," Faucher said, lower house prices "could be enough to push the economy into a recession when combined with other things."

Although home values have begun to stabilize, according to the real estate company Zillow,they remain depressed in much of the country, dragging down the health of the economy.

http://www.huffingtonpost.com/2011/09/13/bank-of-america-foreclosures_n_960613.html

by on Sep. 14, 2011 at 12:08 AM
Add your quick reply below:
You must be a member to reply to this post.
Replies (1-1):
Momof2Stepof3
by Bronze Member on Sep. 14, 2011 at 12:15 AM

BofA sold our loan and while in the middle of finally foreclosing bought our loan stalling the foreclosure once again. So we have a home that has been in foreclosure for just over 6 years now and nothing we can do about it. Were really hoping BofA just foreclosures it SOON.

Add your quick reply below:
You must be a member to reply to this post.
Join the Meeting Place for Moms!
Talk to other moms, share advice, and have fun!

(minimum 6 characters)