Bank of America Halts Foreclosures in All 50 States
Breaking news, from Zero Hedge:
As we expected when we reported that the Delaware AG got into the foreclosure fray (Delaware not being a judicial state), it was only a matter of time before foreclosures would be halted in all 50 states. Sure enough, Diana Olick has just reported that BofA has just expanded its foreclosure halt from the 23 judicial states, to all 50 states. And so, the pendulum swings from populist anger to adulation. The only question is when will Tarp 2 be enacted now that banks are facing tens of billions in losses.
To translate: The big mortgage servicers had halted foreclosure-related evictions in the 23 states that require a judge to sign off, due to concerns about robo-signing and fraudulent affidavits. Of course, if there were systemic problems in those 23 states, there must have been systemic problems in the others. Yesterday, Delaware Attorney General Beau Biden called for a stop to all foreclosures in Delaware — not one of the 23. Now, Bank of America has stopped foreclosing nationwide. More to come.