This post is written as a sequel to a post where I reported that Bank of America has halted foreclosures in all fifty states. As stated by by dsnews, effective Monday, Ocobter 25th, Bank of America will resume the foreclosure sale process in the 23 states that use judicial foreclosure.
On a related matter, Bank of America and Fidelity National Financial (parent company of such companies as Ticor Title, Fidelity National Title, and Chicago Title) have come to an agreement regarding the foreclosure paperwork issues that have plagued several of the largest lenders in the past weeks.
You may recall that Old Republic, the nation’s largest title insurer, announced that they would cease providing title insurance on foreclosed homes in the wake of the announcement that some of the foreclosure transactions at major lending institutions may have occurred without validation of their authenticity.
Under the agreement between Bank of America and FNF, FNF has agreed to continue to provide title insurance for Bank of America’s recently foreclosed homes. Bank of America has agreed to cover all court-related costs and any settlements related to any potential lawsuits, and FNF has confirmed that they would defend new homeowners in court.
A spokesperson for Bank of America said the bank has begun the process of preparing 102,000 foreclosure affidavits for submission in the 23 states in which judicial foreclosure occurs. They anticipate that the first affidavits will be resubmitted to the courts in those 23 states as early as Monday, October 25, 2010.
Once the court has made a judgment, the foreclosures will occur.
Bank of America will continue to temporarily halt foreclosures in the other 27 states until they finish their state-by-state review of policy, procedure, and authenticity.
This is an intriguing and pivotal moment in our nation’s history. Any movements made by these large lending institutions will have long-term effects on the future of our economy.
To read more on this matter, check out the following posts: