With foreclosure listings galloping to new heights everyday
, it became necessary to find out whether the process of foreclosures followed the guidelines laid down by the state laws. It is important that the borrowers' rights are protected while maintaining the integrity of the process of foreclosure. In an attempt to do so, the Bank of America decided to stop its foreclosures and find out whether the process followed by them had some inherent flaws or not.
The process has been halted for 23 states in America. Bank of America will re-look at the affidavits which are yet to be sent for judgment and ensure that proper foreclosure procedures are maintained. There was no estimate from the bank on the number of homeowners who will be affected by this decision.
This announcement from Bank of America was preceded by a similar decision made by JP Morgan Chase. Two days before Bank of America announced this decision, JP Morgan Chase gave an estimate that foreclosure procedure for 56,000 homeowners will be reviewed.
For Chase, an outside counsel is working with the bank to ensure that the process meets standards and that the homeowners are able to space to breathe in. This move by the banks is looked upon as a requirement of aligning the foreclosure process with the state law.
As the banks are now deciding to put a hold on the foreclosure process, the homeowners will be getting a breather and some may even escape foreclosure. This may be a sign of recovery for the economy and there are chances that the housing market may revive from its pits. However, a huge damage has already been made. Those who are looking for a new home can get hold of thousands of foreclosed properties all over the country. If you are one of those prospective homebuyers, visit ForeclosureDataBank.com for the latest listings and the most updated info on foreclosure deals.