WASHINGTON (AP) -- The pace of U.S. home foreclosures may not be slowing down much after all.
Bank of America says it plans to resume seizing more than 100,000 homes in 23 states that require judicial authorization to restart the foreclosure process. It says it has a legal right to foreclose despite accusations that documents used in the process were flawed. The bank says it will resume next week.
Meanwhile, Ally Financial's GMAC Mortgage unit will also resume foreclosures once documents are fixed. A spokeswoman for Ally says as GMAC reviews the affected files and takes any remediation needed, "the foreclosure process then resumes."
Analysts expect other lenders to correct problems with the way they handled documents and proceed with a wave of foreclosures. Nancy Bush of NAB Research says they're likely to follow because foreclosure practices are similar from bank to bank. As she puts it "We'll be back to square one by the end of the year."
(Copyright ©2010 by The Associated Press. All Rights Reserved.)
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