In quite a relief to the economy, Bank of America foreclosures resume again on October 25th according to the bank. The resumption of the foreclosure process is necessary to avoid a second collapse of the housing marke , say many financial analysts. Read the news, listen to the video report, and tell us what you think in the comments.

Bank of America foreclosures

The move affects 23 states that are not covered by a judge’s order to suspend the foreclosure process. The suspension of foreclosure activity will still apply to 27 other states which were covered by the order.

The list of states in which Bank of America foreclosures resume is Connecticut, Delaware, Florida, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Nebraska, New Jersey, New Mexico, New York, North Dakota, Ohio, Oklahoma, Pennsylvania, South Carolina, South Dakota, Vermont, and Wisconsin

Despite the desperate circumstances in financial markets that were caused by the Bank of America foreclosures moratorium, many congressional Democrats have argued for federal intervention to put a longer-term foreclosure freeze in place. The election eve gimmick was hatched by Obama’s political operatives to win a few votes from stressed homeowners. Luckily cooler heads prevailed.

What these Democrat politicians failed to recognize was many homeowners welcome the foreclosure process as a way to get out from under burdensome debt. Those people are looking for a fresh start. And from the bank’s perspective, precious capitol funds are tied up that could go back into investment. And from a macroeconomic perspective, we desperately need those funds re-entered into the marketplace.

You can read more here and here and here.

Bank of America foreclosures were suspended by the bank in early October because of apparently sloppy review process, a move that was followed by several other banks. Reports suggest that managerial reviewers were rubber stamping foreclosure papers without reviewing them something called “Robo signing.” In many cases documents were missing and in a few cases the foreclosures should not have occurred according to the standards of the bank.

Photo credit: Brendel