Recently, it was reported that Bank of America had suspended foreclosures in all 50 states as questions over documentation practices had arisen and cast doubt on the validity of certain home loan foreclosures. While top lenders in the nation, like Bank of America, halted these foreclosures and began a review process, it was recently reported that Bank of America will resume foreclosure proceedings in 23 states.
While there are still reviews being conducted in other states, the return to foreclosure processing activities in 23 states has led many to believe that these foreclosures which were being reviewed and in question were not improperly seized, but simply, the process which was used on the foreclosure paperwork was conducted incorrectly.
Some homeowners had hoped they would be able to combat their foreclosure or possibly regain their home, but many of the foreclosure cases processed where instances in which defaults had occurred and foreclosure had followed.
There are those who view this lift on home foreclosure suspensions as a positive sign, since foreclosure sales may be able to resume in certain states where they had been suspended due to questionable documentation. On the other hand, homeowners who had hoped to at least have the opportunity to stop their foreclosure at the present time and possibly find a mortgage assistance plan may no longer have the opportunity.
Bank of America does offer assistance through home loan modification programs, but numerous homeowners have reported difficulties when working with various mortgage servicers when it comes to finding an affordable mortgage payment alternative. Restarting foreclosure in 23 states by Bank of America is hoped by some to prompt other servicers to begin processing foreclosures again or at least speed up their review process, since many fear the suspension of these foreclosures could do damage to a weak and recovering housing market.