Bank of America has directed its foreclosure attorneys to proceed with 16,000 foreclosure cases after a two-month hiatus where it took steps to ensure that cases were being processed correctly.
"We have identified areas of our process that can be improved, and while we make these improvements, it's important that we move ahead with efforts to reduce the number of abandoned properties across the country," said Barbara Desoer, president of Bank of America Home Loans.
The banking giant, the nation's second largest home servicer, also restarted the process for submitting affidavits of indebtedness in judicial foreclosure states. If approved by the courts, "foreclosure sales will proceed," the company said.
However, during the upcoming holiday season (Dec. 20 through Jan. 2), B of A will suspend foreclosure sales and evictions.
Separately, Chase confirmed that it resumed foreclosure processing on a "state-by-state basis." But a spokesman would not identity any of the states.
Following reports of "robo-signings" of affidavits and other improper practices, state attorneys general urged servicers to review and fix their foreclosure processes. They can resume foreclosures "if they are following the law," said Geoff Greenwood, spokesman for Iowa AG Tom Miller.
He noted the 50 state AGs have not completed their reviews of large servicers that control the market. "This effort is on-going but we are making every effort to do this as quickly and thoroughly has possible," Greenwood noted.
Discussions involving a possible settlement have been "going well," he said. "But I can't say at this point how it will be resolved."
