Bank's Halting Foreclosure

Recently, potential flaws in the foreclosure process have both Attorney Generals investigating banks and banks suspending the foreclosure process.

As reported by the Associated Press today, Bank of America has suspended foreclosure sales in all fifty states.  This suspension comes just days after Massachusetts Attorney General Martha Coakley opened an investigation into Bank of America, GMAC Mortgage, LLC, JP Morgan Chase and Wells Fargo to investigate whether these banks have signed documents in foreclosure cases without verifying the information contained in them.  Massachusetts Attorney General Martha Coakley additionally requested a moratorium on foreclosure sales.

Due to this pressure by local, state and even federal officials, banks have been responding with suspending foreclosure sales in certain states.  Today’s news that the Bank of America is suspending all foreclosure sales in all fifty states could indicate that more banks will follow suit and also suspend its foreclosure sales.