The blog Irvine Housing is reporting BoA plans to increase foreclosures 600% in 2010.
Bank of America is projecting a 600% increase in its already large number of monthly foreclosures.
This isn't unsubstantiated rumor; this comes straight from one of the most powerful men in Bank of America's OREO department (yes, that really is what they call it). It appears they have too many properties already.
The blog seems to be all for it!, that aside, these statistics:
1.2 million Bank of America homeowners are in default. Even if they forclosed on 45,000 a month for a full year, that is only 540,000 foreclosures.
Calculated Risk, where this link was originally reported, is trying to confirm these statistics from BoA directly.
I tried to verify these numbers with BofA without success. Irvine Renter clarified this for me today. Apparently Gaitan said that Bank of America anticipates the peak of foreclosure activity will occur in December 2010 and will top out at 45,000 units that month. Apparently BofA believes foreclosure activity will trend down in 2011. According to Irvine Renter, Gaitan said BofA expects about 300,000 total foreclosures in 2010. That is a significant increase from the current 7,500 per month pace.
Once again, BofA's media department told me they'd get back to me - but no word so far - so there numbers have not been verified.
I have no idea why anyone would be cheering for more foreclosures but it does appear all believe the BoA claims to reduce principle is a public relations stunt (BoA = Bank of America).