BofA Restarts Some Home Foreclosure Cases: Report

Markets Reuters

Bank of America Corp (BAC) restarted about 16,000 home foreclosure cases across the United States on Monday, the Wall Street Journal said.

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The bank had informed its foreclosure attorneys this week to prepare new affidavits in 7,800 cases where court approval is required to foreclose on a home, the paper said.

In those states where court approval is not required for foreclose on a home, the bank has asked its attorneys to lift the hold on 8,000 delayed foreclosure sales, according to the Journal.

"We are taking a deliberate and phased approach," Bank of America spokesman Dan Frahm told the Journal.

The majority of the reopened foreclosure cases are in Florida, California, Texas, Georgia and Michigan, the paper said.

It will take Bank of America six days to review and approve each newly prepared affidavit, a spokesman told the Journal.

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Bank of America could not immediately be reached for comment by Reuters outside regular U.S. business hours.

Many banks including Bank of America, JPMorgan Chase & Co , Citigroup Inc and Ally Financial, had temporarily suspended foreclosure process for sometime amid allegations that banks had used "robo-signers" to sign hundreds of foreclosure documents a day without proper legal review. (Reporting by Sakthi Prasad in Bangalore; Editing by Kim Coghill)