MIAMI (AP) — You may have heard about major banks freezing foreclosures in certain states. But for millions of homeowners across the country, it’s business as usual.
Bank of America has halted foreclosures in 50 states to address paperwork problems, but three other banks have done so only in 23 states. Other banks holding millions of mortgages have not suspended any foreclosures.
In the other 27 states, judges don’t have to review foreclosures. A homeowner must sue the bank for that to happen. Legal experts say that means paperwork mistakes and fraud are even harder to discover.
On top of that, banks mean different things when they say they’re halting foreclosures. Ally Financial’s GMAC Mortgage unit, for example, is still initiating foreclosures nationwide.
