Bank of America ramps up foreclosure proceedings
Bank of America Corp. is stepping up its foreclosure activity in states where a court order is not needed to take back a home. Bank of America is the nation’s largest mortgage servicer, and other big banks could follow suit, according to analysts.
“Nobody really wants to be a leader in foreclosed properties but, for better or worse, that is what Bank of America is,” said Guy Cecala, publisher of Inside Mortgage Finance Publications.
Bank of America has improved its repossession practices and has increased foreclosures in the so-called non-judicial states, such as California and Nevada, where a court order isn’t required to take back a home, spokeswoman Jumana Bauwens said. Such a pickup is necessary if the real estate market is to get over its long slump, she added.
“Strong gains like that from July to August demonstrate our progress,” Bauwens said. “We are seeing continued improvements in foreclosure volumes in many areas of the country, and that is a potential harbinger for housing market recovery.”
In California, Bank of America ratcheted up the number of notices of default on homeowners by 182.4% from July to August, according to a preliminary analysis by San Diego-based research firm DataQuick. The bank filed new foreclosure proceedings on 6,478 homes in the Golden State.
-- Alejandro Lazo
Photo: Members of the Home Defenders League rally in front of a Bank of America branch in San Jose. Source: Associated Press