Reprieve

Bank of America Freezes Foreclosures

More problem paperwork. Bank of America is freezing all of its pending foreclosures as it reviews documents, in the wake of two other banks doing the same. J.P. Morgan and Ally Financial (previously known as GMAC) made similar announcements earlier, but BofA is the largest mortgage lender in the U.S.—and it’s going further than those two, who have said they will redo the paperwork in cases that were incorrectly filed, meaning just a few cases. BofA, by contrast, said it will “amend all affidavits in foreclosure cases that have not yet gone to judgment.” The bank says it’s not sure how many cases it has in court in the 23 states where courts control the foreclosure process, and didn’t say how long it would take to straighten them out. Tens of thousands of foreclosures will likely be affected.