Bank Of America Pushes More Into Foreclosure

Bank of America has been harder hit by the mortgage crisis than any other bank. Only Wells Fargo comes close with a disproportionate share of their assets coming from mortgages.

As Bank of America tries to clean up its mortgage division, more homeowners as a result are getting pushed into foreclosure.

This is not necessarily bad. If people can’t make their monthly mortgage payments on time, then lenders have every reason to foreclose on them.

Bank of America needs to clean up its books and to make a better case to stockholders. Paperwork woes slowed up its foreclosure program for nearly a year but that’s hopping now.

Bank of America stock has dropped more than 50% this year.

The bank feels pressure to clean up their risky mortgage loans, to move defaulted loans into foreclosure, to sell them and to move on.

The USA Today reports:

The number of homes across the country that received an initial default notice — the first step in the foreclosure process — jumped 33% in August from July, the foreclosure listing firm RealtyTrac reported last week. It was the largest monthly increase since August 2007, right after the housing bubble had burst.
Now a preliminary analysis reveals the largest escalation of foreclosures came from Bank of America (BAC). Just in California, default notices sent by Bank of America soared 96% in August from the previous month.

About Luke Ford

Raised a Seventh-Day Adventist at Avondale College in Australia, Luke Ford moved to California in 1977. He graduated from Placer High School in 1984, reported the news at KAHI/KHYL radio for three years, attended Sierra College and UCLA, was largely bedridden by Chronic Fatigue Syndrome for six years, and converted to Judaism in 1993. From 1997-2007, Luke made his living from blogging. Living by Beverly Hills (Alexander90210.com), he now teaches the Alexander Technique (moving the way the body likes to move). Lessons cost $100 each and last about 45 minutes. In 2011, Luke completed a three-year teaching course at the Alexander Training Institute of Los Angeles. His personal Alexander Technique website is Alexander90210.com. Luke is the author of five books, including: » The Producers: Profiles in Frustration » Yesterday’s News Tomorrow: Inside American Jewish Journalism
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