Bank of America is stopping foreclosures in all 50 U.S. states.
Last week the bank, the country’s biggest by assets, announced it was halting foreclosures in the 23 states where foreclosures are processed in court, saying it needed to review foreclosure documents for potential errors. Now, the bank has extended that moratorium to all 50 states as it has decided to stop sales of foreclosed properties, blocking a major step in the foreclosure process.
The decision comes as a foreclosure crisis threatens the nation’s housing market and larger economy. Reports of foreclosure processors approving documents without properly reviewing them and bank agents changing locks on the doors of houses that aren’t even in foreclosure — while the residents are inside — pile ambiguity and scandal on the foreclosure system. Delays in the process further cripple the weak housing market.