Foreclosure-Gate Spirals: Bank Of America And PNC Now Halting All Foreclosures

phoenix foreclosure

and PNC have both just halted foreclosures in the wake of the “robo-signing” scandal impacting the industry.

Both banks are responding to political pressure on the matter. Yesterday, President Barack Obama vetoed a bill that would make foreclosure proceedings easier for banks.

Bank of America’s foreclosure stop starts Saturday and effects all 50 states in the U.S., according to the Wall Street Journal.

PNC’s stop will be in place for a month, and it affects 23 states.

JPMorgan Chase and GMAC have already stopped foreclosures.

The potential impact of this stop and the creation of new rules around foreclosures is an increase in costs for banks, but the full fallout is still far from being known.

Check out Chris Whalen’s terrifying presentation on the 2011 foreclosure crisis >

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