On Friday, the nation’s largest bank announced it would be halting foreclosure proceedings in all 50 states in order to review paperwork, but Bank of America had already stopped to investigate its foreclosure documents in Florida.
Florida is one of 23 states where foreclosures must be signed off on by a judge in court, and Bank of America had already halted foreclosure proceedings in those states to review the possibility of poorly prepared foreclosure paperwork. Other banks have also halted proceedings to review foreclosure paperwork.
The announcement by bank officials today that its review would spread to all 50 states set off a media firestorm, causing the bank to release this statement.
In the wake of the real estate collapse in Florida, the court system has been strangled by a glut of foreclosure filings. This week the Florida Bar News published an interesting story on so-called “sloppy” foreclosure paperwork that is taxing the system. The story that can be seen here is especially telling with Bank of America’s announcement today.