Struggling homeowners dealing with Bank of America should be on the lookout: Bank of America is ramping up its foreclosure processing, sending out more notices of default in August than in previous months. CNBC.com is reporting that on a month-to-month basis, this represents a more than 200 percent increase.
The foreclosure tracking firm RealtyTrac has confirmed a surge in recent notices of default, which is the first step in the foreclosure process for lenders (at least in non-judicial foreclosure states). This increase appears to be primarily in non-judicial foreclosure states, where no court order is needed for banks to proceed with foreclosures.
On a side note, many of Bank of America’s foreclosures are conducted by a company called Recontrust.
If you have received notice of a Bank of America foreclosure, or a foreclosure notice from any other bank for that matter, it is important to go on the offensive. While they may say they will work with you on a modification, don’t assume that entering the loan modification process will stop foreclosure proceedings–even if they tell you over the phone that it will! Speak with an attorney in your state about your rights and about what you can do to protect your home.