Chase And Others Freeze ForeclosuresIn a move that seems to signal that something is really wrong, Chase (NYSE: JPM), and GMAC Mortgage have temporarily put a freeze on foreclosure proceedings of private residences, and said that they will amend paperwork in cases they feel have been improperly done. Bank of America said they are going to amend all affidavits in all foreclosure cases that haven’t yet gone to judgment. A spokesman for Bank of America (NYSE:BAC) said that they didn’t know how many cases were currently pending, but that after review, they would all be resubmitted.
Connecticut Attorney General Richard Bloomenthal, and California Attorney General Jerry Brown have both voiced opinions that foreclosure proceedings should be frozen in their states. The way it looks now, tens of thousands of foreclosure cases could be postponed for months or even years.