Economy

Foreclosures on hold leave some Wichita houses in limbo

WICHITA, Kan. -- Water drips into the finished basement of the spacious house on North Muirfield in west Wichita. Ceiling tiles sag with moisture; mold speckles the walls.

After getting almost all the way through the nearly year-long foreclosure process, the house got stuck in limbo because the lender, the Bank of America, declared a moratorium on foreclosures.

Bank of America is one of the Wichita area's largest mortgage lenders, with about 10 percent of the market, according CoreLogic figures.

Three other major banks, Ally Financial's GMAC Mortgage unit, PNC Mortgage and JPMorgan Chase, with much smaller pieces of the market have also halted foreclosures.

Allegations have been leveled at the banks that they pushed through hundreds of thousands of mortgages without verifying information or lacking key documents required by law to foreclose.

Last week Kansas joined other states to investigate whether mortgage company employees made false statements or prepared documents improperly.

Read more: http://www.kansas.com/2010/10/17/1545775/foreclosures-on-hold-leave-some.html#ixzz12e2Sov9T

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