Bank of America and GMAC start foreclosures

By Deon Guillory - bio | email
Posted by Shawn Maclauchlan

RICHMOND, VA (WWBT) - After a short halt, two of the nation's biggest banks will resume with home foreclosure sales.

Bank of America and Ally Financial's GMAC mortgage unit plan to start the process again next week - but not in Virginia.

This is good news for people trying to hang on to their homes for as long as possible.

Bank of America and GMAC will continue to hold off on foreclosures in Virginia because we are among 27 states that do not require judge's approval to foreclose.

In the states where it is required, Bank of America says it has a legal right to foreclose.

Two weeks ago, banks were accused of using flawed documents in the process.

Attorneys general in every state have opened a joint investigation into possible mortgage fraud.

Things could get worse before they get better.

Experts say banks have so many foreclosed houses on their books, when they release all that inventory for sale, prices are expected to plunge even further.

There are about five million foreclosed homes currently on the market.

Real estate agents say they have two major clients right now: those who are desperate to sell to avoid foreclosure, and investors who think they can profit off other peoples' bad luck.

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