Red Tape

Bank of America Lifts Foreclosure Freeze

Bank of America, the largest bank in the U.S. by assets, will resubmit foreclosure documents in 102,000 cases where judgment is still pending in 23 states. The bank halted foreclosure proceedings Oct. 8 after questions arose over disclosures that it hadn’t properly reviewed foreclosure documents before submitting them. Shares dropped 9.1 percent last week—the lowest levels in more than a year—but rallied after Monday’s announcement, up more than 3 percent by the market’s close. While the bank has reviewed its procedures in 23 states, foreclosure sales will be delayed in the 27 states that have not been reviewed. Bank of America said fewer than 30,000 foreclosure sales were affected by the review, and rumors of high costs incurred were exaggerated.