Tuesday, October 26, 2010

Bank of America Finds Foreclosure Errors


Bank of America (BAC), for the first time, acknowledged it has uncovered some mistakes in its foreclosure files, The Wall Street Journal reported, as it starts to resubmit documents in 102,000 cases.

The nation's largest mortgage lender discovered errors in 10 to 25 of the first several hundred foreclosure cases it examined over the past week. The mistakes ranged from improper paperwork to lack of signatures and missing files, as well as information irregularities about the properties or payment history, people familiar with the results told the Journal. The bank has prepared less than 1% of the first foreclosure files that it plans to submit.

Some of the problems found so far were relatively minor -- such as misspellings of borrowers' names -- and didn't result in wrongful foreclosures, the bank found.

All 50 states have recently launched investigations into allegations of improper foreclosure filings and procedures, including the use of "robo-signers." Bank of America, Wells Fargo (WFC) and others have been under pressure to show that their mortgage process isn't flawed.

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