Bank of America Starts Thaw in Foreclosure Freeze

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Bank of America announced Monday its plans to resume foreclosure proceedings in 23 states next week. The company said it has a legal right to foreclose despite accusations that documents used in the process were flawed.

The bank will re-file paperwork in 102,000 cases in states where a judges approval is required to resume the foreclosure process. However, it will continue to delay about 30,000 foreclosures in states where a judge's approval is not needed.

"The basis for our foreclosure decisions is accurate," Dan Frahm, a Bank of America spokesman, said in announcing the bank's new approach.

The company had been the only lender to stop foreclosures in all 50 states when it learned that some documents had been filed without being read by employees.

Analysts expect other lenders to correct problems with the way they handled documents and proceed with a wave of foreclosures that have depressed the housing market. They are likely to follow because foreclosure practices were similar from bank to bank, said banking analyst Nancy Bush of NAB Research.

Shares of Charlotte, N.C.-based Bank of America rose 36 cents, or 3 percent, to close at $12.34 after the foreclosure announcement was made.

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