Seminole County Foreclosure News: Bank of America Accused of Causing Foreclosure Delays

New today in Seminole County foreclosure news, a recent court filing claims that Bank of America, currently the largest mortgage servicer in America, unnecessarily complicated the jobs of regulators tasked with reviewing the bank’s foreclosure practices. The review was a result of recent information that was uncovered which showed the mortgage giant used unfair practices in its mortgage processes, including the use of “robo-signers.” This allowed the bank to sign hundreds of foreclosure documents every day, often with little or no review.

The new accusations claim that the bank purposely hindered the review committee’s progress by being slow to produce documents and other information. The bank also made interviews difficult by either denying them or involving attorneys or having them present, making it difficult for reviewers to get useful information.

Bank of America maintains that it fully cooperated with reviewers and denies the accusations.

The review found that banks, including Bank of America, did not have proper paperwork in place that would have allowed the Federal Housing Administration to reimburse them for foreclosures sold for less than the remaining balance.

This is not the first time Bank of America has been accused of unfair foreclosure practices. In addition to the robo-signing and other fraudulent activities it has been accused of, the bank has also been sued over accusations that it routinely misled consumers about home loan modifications.

A link to the article discussing the latest case that accuses Bank of America of hindering the foreclosure review can be found here.

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