October 21, 2010

In an abrupt about-face, Bank of America, after publicly touting that it would halt foreclosures in all 50 states, has apparently tubed this position and is now resuming foreclosures full-bore, as it advised one of our contacts yesterday. According to the Bank of America representative, foreclosures went live in 23 states yesterday, and the rest as of today.

The announcement comes after Bank of America also publicly claimed that it had conducted an internal audit and investigation of its foreclosure actions, and that according to them, none of the foreclosures were legally infirm. We personally know this not to be true, for on the day that this pronouncement was made, Jeff Barnes, Esq. argued against a Bank of America motion filed in a case in Florida requesting a final judgment of “re-foreclosure” which had been filed because B of A (through the now infamous Law Offices of David J. Stern) had failed to name three junior mortgage lienholders in the original action. Guess B of A and Stern think that junior lienholders do not rate! Fortunately, the Judge denied B of A’s Motion.

We believe that the real reason that B of A is ramping up foreclosures is because (coincidentally, right?) that certain investors have now sued B of A, which came on the heels of the mortgage guaranty insurers’ demand that B of A repurchase some $20 billion of securitized mortgages. B of A apparently wants the investors to think that they are actually doing something. Are they? Let’s wait and see; this story seems to change by the day.

Jeff Barnes, Esq., www.ForeclosureDefenseNationwide.com