San Francisco (Obama.net)- In twenty-three states in America, the process of foreclosure is controlled the by court system. And in those twenty-three states, three major lenders have now frozen the process.
Last week, Bank of America, which is widely regarded as the top leader in the country, joined JP Morgan Chase and GMAC Mortgage in amending documents. Bank of America officials said that they will “amend all affidavits in foreclosure cases that have not yet gone to judgment.”
This is expected to lead to delay thousands of court cases pertaining to foreclosure for, in some cases months, and in others years. There is not an exact figure as of yet on the number of cases that are being gone over in the court system as of now.
A Bank of America spokesperson said that there was no set date for when the process would end. There was also no reasoning given for why the freeze was placed. The spokesperson did say that all of the cases would be submitted again after they were reviewed and amended appropriately.
Connecticut’s Richard Blumenthal recently asked Connecticut judges to place every foreclosure case on hold for a total of 60 days. The Attorney General reasoned that the pause “should stop a foreclosure steamroller based on defective documents and enable effective remedies.
Jerry Brown, the Attorney General of the state of California also demanded that both GMAC and Chase halt their foreclosure process until it is reevaluated and proven to be done properly.
Chase has announced that approximately 56,000 cases have already been put on pause. GMAC on the other hand is not willing to release figures pertaining to their freezing.
The problems with the foreclosures are due to an unusual amount of foreclosure cases coming about recently.
LPS Applied Analytics reports that two million America homes are currently in the process, while 2.37 million more are close to the beginning of the foreclosure process.
The housing market situation in the United States has come under fire in recent years after it essentially collapsed under itself due to poor management by lenders. Now, more problems are facing lenders and the housing market with the freeze. The hope is that issues will be resolved and that many will be able to keep their homes.
I’m happy that all foreclosures are currently stopped. The process is way too complicated and unpredicatable. With this economy and the hope for homeowners plan, the banks and the homeowners should be able to work something out. However i’m pretty pessimistic based on the actions of these banks to this point.