WASHINGTON – Bank of America plans to resume foreclosures on more than 100,000 homes in 23 states next week, saying Monday it has a legal right to seize them.
Bank of America Corp., the country’s largest bank, began halting foreclosures on Oct. 2 amid questions of faulty paperwork.
The company on Monday said it plans to resubmit documents with new signatures in states that require a judge’s approval to restart the foreclosure process.
It will continue delaying foreclosures in 27 states that do not require a judge’s approval.
The entire process will result in fewer than 30,000 foreclosures being delayed, the company said.
The company’s initial assessment shows that “the basis for our foreclosure decisions is accurate,” said Dan Frahm, a Bank of America spokesman.
Bank of America is the only lender to halt foreclosures in all 50 states. Other companies including Ally Financial Inc.’s GMAC Mortgage unit, PNC Financial Services Inc. and JPMorgan Chase & Co. have halted tens of thousands of foreclosures after similar practices became public.
The growing questions about foreclosure documents could cause thousands of homeowners to contest foreclosures that are in the works or completed. Analysts say most homeowners facing foreclosure are still likely to lose their homes.
Shares of the Charlotte, N.C.-based bank had been flat earlier in the day but jumped on the news. They rose 35 cents, or 2.9 percent to $12.33 in afternoon trading.
Wells Fargo & Co. does not plan to halt foreclosures despite an employee’s testimony that she signed up to 500 foreclosure documents daily without reading them.
The employee of the San Francisco-based bank said in a deposition taken last March that she signed between 300 and 500 foreclosure documents per day, verifying only her name and title.
Such practices have been called into question by attorneys general in 50 states. They have accused mortgage companies of violating state laws.
Wells has not halted foreclosures and says it has discovered no problems in the legal documents used to process them. The company said earlier in the week that it would review pending foreclosures for potential defects.
“Our records show that Wells Fargo’s foreclosure affidavits are accurate,” said company spokeswoman Vickee Adams. When the company finds employees that don’t follow procedure, it takes “corrective action.” She declined to comment on whether the Fort Mill, S.C.-based employee, Xee Moua, still works for Wells.
