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Faulty Process Blamed for Bank of America Foreclosure Listings

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By : John Cutts    99 or more times read
Issues regarding alleged irresponsible processing of foreclosures by banks have grabbed the headlines recently. According to some reports, a number of homes under Bank of America foreclosure listings and other bank foreclosed property listings were included in the lists because of erroneous procedures.

According to some real estate market observers, this happens to residential properties in hardest hit areas, like San Jose foreclosed homes. Recent news have revealed such occurrences involving JPMorgan Chase and GMAC, with employees from both banks reportedly admitting signing foreclosure documents without reading them first.

Not all homes under California foreclosure listings and under major city listings are supposed to be foreclosure types. In a recent Florida case, a property was allegedly foreclosed on by Bank of America despite the home not even owning a mortgage. The foreclosure process was reportedly started by Countrywide in 2008.

The owner of the property reportedly paid for the home in cash in December, but the house was still included in the area's listings of foreclosures. The good news is that Bank of America has taken action to fix the problem and has shouldered all expenses related to the process of resolving the issue.

However, the Florida case was reportedly not the first property to be erroneously included in Bank of America foreclosure listings. In 2009, a Texas homeowner was reportedly locked out of his house and the electric power for the dwelling was shut down while a foreclosure proceeding was started. The issue was eventually addressed and the bank had admitted that the residence belongs to the current owner.

Another such case, which also happened last year, involved a homeowner in Pittsburgh, Pennsylvania. The owner was allegedly locked out of the premises despite paying her mortgage regularly. The utilities were shut off and the owner's pet parrot was reportedly taken by the foreclosing lender.

In both cases, the bank issued an apology and a statement revealing that it is trying to stop such incidents from getting repeated by investing more on employee training and improving communication among departments. However, homeowners who have had their houses included in Bank of America foreclosure listings even when there are no legal reasons for their properties to be so had asked for tougher sanctions on banks that commit similar mistakes.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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