Foreclosure Mistakes Exaggerated, Bank Of America Representative Says

The most recent foreclosure crisis, stemming from the discovery of faulty and fraudulent paperwork, has the real estate industry, distressed homeowners and prospective buyers anxious about the outcome. An undisclosed number of homeowners facing foreclosure continue to file lawsuits against their banks, and many lenders have been forced to suspend foreclosure proceedings.

But Bank of America has said the number of erroneous foreclosure documents has been grossly overstated. Barbara Desoer, Bank of America's president of home lending and insurance, told the Charlotte Observer fewer than 30,000 home sales will be impacted by the recent events, though the bank will conduct a review of more than 102,000 pending foreclosures.

"We believe that our assessment shows the basis for past foreclosure decisions is accurate," Desoer told the Observer. "The type of borrower in that 30,000 is somebody who hasn't made a payment in an extended period of time."

Although Bank of America has suspended some foreclosure proceedings and agreed to conduct reviews of its procedures, the bank has limited its review to 23 U.S. states. However, the bank has said it may extend its investigation to a nationwide scale over the next few weeks.