Photo used under a Creative Commons licenseDue to a public uproar over the allegedly passive review of documents leading to residents being evicted from foreclosed homes, Bank of America has announced that it will temporarily halt all foreclosure proceedings and sales nationwide, reports the Washington Post. In a statement, the bank said that they “will stop foreclosure sales” until an internal investigation is completed. “Our ongoing assessment shows the basis for foreclosure decisions are accurate. We continue to serve the interests of our customers, investors and communities. Providing solutions for distressed homeowners remains our primary focus,” said the statement.
Earlier this week, D.C. Del. Eleanor Holmes Norton called for the nation’s three largest residential lenders — J.P. Morgan Chase, Ally Financial and Bank of America — to institute a moratorium on foreclosure proceedings in the District “until they can assure residents here that they have systems in place to prevent improper foreclosures.” Norton’s concern arose after she had talked with homeowners at an event earlier this year during which many D.C. residents had complained that lenders were unfairly erecting too much red tape for them to get a fair shake at hanging on to their homes.
