Bank of America is one of the large mortgage servicers who has suspended foreclosures due to questionable documentation practices on certain homes. Reports indicate that employees with servicers like Bank of America, among others, improperly processed foreclosure documents, which many feel may have led to homes being foreclosed on prematurely.
However, there is a consensus that believes the majority of these foreclosure documents which are being reviewed during the suspension will be found to have qualified for foreclosure, even though the methods which were used may have violated foreclosure processing policy. Bank of America, which is one of the nation’s largest mortgage servicers, has attempted to help homeowners avoid foreclosure through home loan modification programs, but numerous homeowners have still faced foreclosure over the past months.
Questions surrounding these foreclosure suspensions and reviews typically deal with documents not been properly reviewed or notaries not being present when documents were signed. While this may cause some problems for institutions like Bank of America, meaning they may have to pay fees or fines, there are those who feel these mortgage foreclosures will not be repealed since many homeowners had defaulted on their mortgage before facing foreclosure.
While Bank of America does still offer assistance through home loan modification plans in the hopes of helping homeowners avoid foreclosure, recent revelations over the processing of foreclosures hoped to bring about change within the mortgage industry. While, again, foreclosure do still remain a problem for many homeowners due to their inability to meet their monthly mortgage payment obligation, there is hope that new foreclosure proceedings and policies will allow for a more strict review process, which could allow homeowners with servicers like Bank of America the opportunity for more extensive foreclosure prevention programs.