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Regional Banks Still Stuck with Foreclosures

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Regional Banks Still Stuck with ForeclosuresMany of the nation’s larger regional banks have hundreds of millions of dollars worth of home loan payments still outstanding, and most have a significant number of properties that could be repossessed, according to a report from financial news site The Street. However, because of the large number of foreclosures they need to fully review before taking such an action, banks are struggling to collect on seriously delinquent or defaulted loans.

[Related: Solving The Foreclosure Mess: Let’s Get Serious]

This process has become increasingly difficult as a result of a suit filed by the nation’s 50 state attorneys general, alleging that the nation’s largest banks allowed unauthorized employees to inappropriately review and approve hundreds or even thousands of foreclosures per week, the report said.

The number of months between when a consumer received their initial foreclosure action and when they were evicted from their home reached an all-time record last year as a result of this glut of actions facing many banks large and small.

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