Bank of America has stopped foreclosure sales nationwide under criticism about documentation. Legislators and state prosecutors expressed concerns about "robo-signers," "employees who sign hundreds of documents a day, without carefully reviewing their contents, when foreclosing on homes," according to a Wall Street Journal report.
Read more and watch a video report from PBS here.
- What are the ethics of signing documents without reading them? What are the potential consequences for homeowners?
- Homeowners complain that loan officers assigned to their case are unresponsive. Why is this happening, and what is the responsibility of banks to communicate with homeowners in danger of foreclosing?
- Review Bank of America's statement about halting foreclosure sales (below). Rewrite the statement to use clearer, simpler language.
"Bank of America has extended our review of foreclosure documents to all fifty states. We will stop foreclosure sales until our assessment has been satisfactorily completed. Our ongoing assessment shows the basis for our past foreclosure decisions is accurate. We continue to serve the interests of our customers, investors and communities. Providing solutions for distressed homeowners remains our primary focus."
- Write a letter to homeowners explaining the situation. For many homeowners this is good news: they may have more time in their home before it's foreclosed. However, from the bank's perspective, this is not good news. Balance these messages in your letter.