B of A Halts Foreclosures in All States - 8 News NOW

B of A Halts Foreclosures in All States

Posted: Updated:

LAS VEGAS -- The nations biggest bank has put the breaks on selling any foreclosures in all 50 states. Bank of America originally only had 23 states on the list, but have since expanded to include the all 50 after concerns of mishandled foreclosure documents.

Nevada's Attorney General is now requesting all banking institutions that provide mortgage loans to Nevada properties to implement a moratorium on all foreclosures, evictions and REO sales in the state until meeting with their office. They want to ensure proper safeguards are in place.

Meantime, there's mixed reaction about Bank of America's move to stop selling foreclosures.

"There's not much we can say other than the banks are doing things on their time and their speed," said realtor Nicole Lavigne. "Obviously, there's been a lot of press with legal documents not being handled properly, so we want to make sure that everything is being done the way it should be with the banks."

More than that, Lavigne says there may be a chance home prices could rise because not as many low-priced homes would be on the market.

"It presents a tremendous opportunity for traditional sellers to not have to compete against bank owned listings," she said.

But not everyone agrees any good can from the move. Rick Shelton is president of the Greater Las Vegas Association of Realtors and believes stopping foreclosures or the sale of them would do more harm than good.

"From a personal perspective, I'm not sure that it serves our purpose whatsoever," he said. "To cure the cycle, you have to go through the process. And stalling the process, you elongate the cycle. So that's the downside to it."

Shelton says people do have reason to be concerned over the chance of mishandled or misfiled documents. However he doesn't feel moratorium is the answer.

"Does that discredit the fact an agreement was made on behalf of a mortgager? I don't think so," he said.

Bottom line, Shelton thinks delaying the process will not help, especially in one of the worst housing market in America.

"They are just basically stopping a freight train that's already moving and now we're are going to have to start that train up again to finish the process," he said.

Calls for comment on this story to Bank of America were not returned.

Powered by WorldNow
All content © Copyright 2000 - 2014 WorldNow and KLAS. All Rights Reserved.
For more information on this site, please read our Privacy Policy and Terms of Service.