Bank of America, the lending giant that holds approximately one out of every five mortgages in the nation, issued a statement on Oct. 8 that it is halting foreclosure procedures nationwide until it can review the sufficiency of court documents.
Other companies that have announced halting foreclosure proceedings in at least some states are Ally Financial Inc.’s GMAC Mortgage Unit and JPMorgan Chase & Co. Meanwhile, Arkansas Attorney General Dustin McDaniel announced on Wednesday that he is joining the other 49 other attorneys general in the nation in an investigation of foreclosure practices. Alabama is the only state not joining that investigation. Additionally, 30 state banking examiners are taking part in the investigation.
Susan Purtle, pro bono manager for Legal Aid of Arkansas, said her organization has questioned the adequacy of foreclosure documents for some time. In April, Legal Aid sponsored a foreclosure seminar in Fayetteville featuring April Carrie Charney, senior staff attorney at Jacksonville, Fla., Area Legal Aid.
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