Bank of America stops US foreclosures for review, According to the AP

According to a story published by the AP, “Bank of America on Friday halted foreclosures on homes across the country so it could review paperwork in tens of thousands of cases for flaws, expanding a crisis at a perilous time for the housing market.”

The article continues to state that “The suspension in foreclosures could prop up home prices in the short term because fewer cheap homes would pour onto the open market in coming months. When those properties ultimately do go up for sale, the overall economy could be in better shape.

‘The irony is, it may actually support the recovery,’ said Mark Zandi, chief economist at Moody’s Analytics. ‘It may be that when those properties actually hit the market, the economy is in a better place.'”

In a related story, Washington state homeowners received a boost from a recent settlement negotiated by Washington Attorney General Rob McKenna and announced on October 6, 2010. Mr. McKenna announced “the settlement with Wells Fargo Bank that provides loan modifications for residents in Washington and seven other states who obtained problematic mortgages from Wachovia Bank and Golden West Corp., which did business as World Savings Bank.