It looks like the controversy over improper foreclosure processing is spreading. After initially halting foreclosures in 23 states, Bank of America has announced it was halting foreclosure in all 50 states as of today. Under pressure from federal officials, Bank of America, JP Morgan, PNC Financial, and GMAC Mortgage have all at least cut back on foreclosure proceedings following allegations of improper processing proceedings.
No word yet on how long it will take these banks to review their foreclosure processes, but one would hope they will be back to normal soon. In reality, this stoppage is going to do little to help struggling families catch up on their mortgages, but could cause foreclosure inventories to stockpile if the issue is not quickly remedied. There are some claims that this could merely be the tip of the iceberg in terms of improper behavior by the banks. Should be interesting the next few weeks.
Via Yahoo Finance