Bank of America Corp. on Monday said it will begin moving forward again with more than 100,000 foreclosure sales in 23 states, while continuing to review cases in North Carolina and the rest of the country.
The Charlotte bank is one of a number of banks that have stalled foreclosure proceedings amid allegations that court documents were mishandled or signed without proper review. It was the first to suspend such actions nationwide.
The news was well received on Wall Street, where bank stocks have been battered over worries about the mortgage mess and its potential cost. Bank of America's shares climbed 3 percent to $12.34 Monday after falling more than 9 percent last week.
Bank of America reports third-quarter earnings today and is likely to face questions from analysts about the foreclosure situation - the latest blow to the financial industry, struggling borrowers and a fragile housing market.
The nation's biggest bank said it was taking the latest action after reviewing its procedures internally and with mortgage investors such as Freddie Mac and Fannie Mae. The examination involved foreclosure actions in the 23 so-called "judicial states," including South Carolina, where judges are involved in approving foreclosure actions.
In those states, the bank reviewed a statistical sampling of affidavits in 102,000 foreclosure actions in which judgments were pending, Bank of America spokesman Dan Frahm said. Now the bank is preparing to resubmit amended affidavits in all of the actions, with the first filings expected Monday. The bank didn't find mistakes with the underlying facts for those foreclosures but is now proceeding under a validated process, Frahm said.
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