Power Play

Bank of America Announces Redo of 102,000 Foreclosures

WASHINGTON -- Bank of America announced Monday that it will begin moving forward again on the foreclosure process on 102,000 homes, resubmitting paperwork for a judge to approve the sales and continuing to review additional cases.

BofA will amend documents required to begin foreclosure actions by Oct. 25 in a move that lifts the freeze on foreclosures scheduled in 23 states.

A BofA spokesman said it expects fewer than 30,000 foreclosure sale delays since initial assessments found that the bank was accurate in coming up with its bases for foreclosure decisions.

"Our decision to review our process and later, to extend our review to all 50 states, has been an important step to give customers confidence they are being treated fairly," said spokesman Dan Frahm. "We will continue to delay foreclosure sales in the remaining 27 states until our review is complete on a state-by-state basis." 

Bank of America, the country's largest bank, began halting foreclosures on Oct. 2 amid questions of faulty paperwork. It is the only lender to halt foreclosures in all 50 states. 

Other companies including Ally Financial Inc.'s GMAC Mortgage unit, PNC Financial Services Inc. and JPMorgan Chase & Co. have halted tens of thousands of foreclosures after similar practices became public.

The growing questions about foreclosure documents could cause thousands of homeowners to contest foreclosures that are in the works or completed. Analysts say most homeowners facing foreclosure are still likely to lose their homes.

Shares of the Charlotte, N.C.-based bank had been flat earlier in the day but jumped on the news. They rose 35 cents, or 2.9 percent to $12.33 in afternoon trading.

The Associated Press contributed to this report.