After receiving a letter this week from the North Carolina attorney general asking the company to suspend foreclosures, Charlotte-based Bank of America today said it will stop foreclosure sales in all 50 states.
“Bank of America has extended our review of foreclosure documents to all 50 states. We will stop foreclosure sales until our assessment has been satisfactorily completed,” bank spokesman Dan Frahm said in an e-mailed statement.
The announcement comes after Attorney General Roy Cooper announced this week that he was launching an investigation into 14 mortgage lenders, including Bank of America. In letters sent Tuesday, Cooper called on the lenders to suspend foreclosures in North Carolina until the lenders could show that their foreclosure affidavits procedures comply with the law.
The investigation was prompted by national reports that some mortgage companies have been using foreclosure processes that might be illegal, the attorney general’s office said.
“Our ongoing assessment shows the basis for our past foreclosure decisions is accurate,” Frahm said in the statement.
In a separate e-mail, company spokesman Rick Simon said the bank “will not proceed to judgment in judicial foreclosure states and will stop foreclosure sales in all 50 states until the assessment of the documents is completed.”