Foreclosure Moratorium

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Wednesday, October 13, 2010 - 9:35am

Congress considers halting foreclosures as states investigate bank practices.

Is a moratorium on home foreclosures on the horizon?

Some members of Congress are considering the move after the revelation that families have been forced out of their homes without proper proof that they defaulted.

Bank of America and two other major mortgage servicers now admit their loan officers signed thousands of court filings without verifying the facts.

As many as 40 states will team up to investigate.

The Obama administration say it has reservations regarding a moratorium, saying it could stall economic recovery and keep buyers out of homes.

The states will officially announce their probe on Wednesday, hoping to force banks go back and be sure every foreclosure was and will be legally justified.
 

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