America's foreclosure crisis: What it means for your mortgage

Bank of America has frozen foreclosures, sparking calls for a nationwide ban on repossessions. Is that move likely, and how would it affect the average homeowner?

The sale of foreclosed homes has helped banks and mortgage-lenders still trying to recover from the housing crisis.
(Image credit: CC BY: Jeff Turner)

Bank of America announced last week it would freeze foreclosures in all 50 states, as concerns mounted over the legal basis for home repossessions. JP Morgan Chase and Ally Financial also halted foreclosures in 23 states, and other banks are considering following suit. Some congressional Democrats want a nationwide freeze on repossessions — a move the White House opposes. (Watch a Fox News report about the foreclosure crackdown.) Here's an instant guide to America's mortgage mess:

Why has Bank of America frozen foreclosures?

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