2011 Getty Images
A foreclosure sign hangs on a fence in front of a foreclosed home on April 6, 2011 in Richmond, California.
Bank of America increased foreclosures by nearly 200 percent in California between July and August.
John Karevoll, an analyst with DataQuick told Patt Morrison that the bank is capitalizing on favorable laws in California and other states where a court order isn’t needed to repossess a home.
“This is the rip-the-band-aid-off policy here," he said. "It’s basically just to go out there and plough through it and get rid of it.”
Dan Frahm, the senior vice president of Bank of America Home Loans, says the recent upswing in foreclosures is due to a massive backlog.
“Those foreclosures that have been on hold for quote some time are now moving through the process. 1.2 million of our customers are about 60 days delinquent or more, and of that population about 40 percent haven’t made a payment in about two years,” he said.
Frahm said that while foreclosures are painful for those losing their homes, they are necessary to reinvigorate the housing market.
Will the push to get these homes up for sale help the housing market recover or do other factors like unemployment and lending play into the mix?
John Karevoll, analyst with DataQuick, a San Diego-based research firm
Dan Frahm, senior vice president, Bank of America Home Loans
Dean Baker, co-director of the Center for Economic and Policy Research
Lisa Sitkin, staff attorney for Housing and Economic Rights Advocates, a California statewide, not-for-profit legal service and advocacy organization
For more information, call Housing and Economic Rights Activists at: (510) 271-8443