Oct 8, 2010

UPDATE 1- BofA Halts Foreclosures


Fri Oct 8, 2010 11:39am EDT

* Sales of foreclosed properties also halted
* Bank conducting review of foreclosure process

CHARLOTTE, N.C. Oct 8 (Reuters) - Bank of America Corp (BAC.N) is halting foreclosures and sales of foreclosed properties in all 50 U.S. states pending a review of its internal processes, the bank said on Friday.

BofA, the largest U.S. mortgage servicer, is the first U.S. bank to suspend foreclosures in all 50 states. The step comes amid a growing furor over how the largest U.S. mortgage lenders are repossessing the homes of delinquent borrowers.

Critics contend the banks' use of "robo-signers" and other automated processes is unfairly pushing residents out of their homes.

A spokesman for Charlotte, North Carolina-based BofA defended the bank's previous foreclosures.

"We will stop foreclosure sales until our assessment has been satisfactorily completed," the spokesman, Dan Frahm, said in a statement. "Our ongoing assessment shows the basis for our past foreclosure decisions is accurate."

Last week, BofA, JPMorgan Chase & Co (JPM.N) and Ally Financial Inc's GMAC Mortgage announced plans to suspend foreclosures in 23 states pending a review of foreclosure procedures. (Reporting by Joe Rauch; editing by John Wallace)

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