Reid calls for halt to foreclosures in all states

Senate Majority Leader Harry Reid (D-Nev.) on Friday urged major mortgage lenders to halt foreclosures in all 50 states following a decision by Bank of America that it is stopping proceedings until it completes a review of possible paperwork problems.

Reid, who sent a letter to major banks — Bank of America, JP Morgan Chase, Wells Fargo and Ally Financial — on Thursday urging them to suspend foreclosures in Nevada, asked for all servicers to stop proceedings in all 50 states. 

"I thank Bank of America for doing the right thing by suspending actions on foreclosures while this investigation runs its course," Reid said in a statement. "I urge other major mortgage servicers to consider expanding the area where they have halted foreclosures to all 50 states, as well."