Freezing foreclosures? What does that mean?

NEW YORK (CNNMoney.com) -- Halted foreclosures? Robo-signers? Shoddy paperwork?

The foreclosure crisis has entered a new phase, with at least three major banks halting foreclosure proceedings and sales in nearly two dozen states. One just expanded the ban on foreclosure sales across the nation.

The developments, however, have left homeowners with many questions. CNNMoney.com tries to cut through the confusion.

Why are major banks halting foreclosures?

Banks are temporarily freezing foreclosures while they review their handling of the process. Ally Financial, formerly known as GMAC, was the first to stop the clock, admitting that some of its foreclosure paperwork may not have been signed in the presence of a notary public and that the signer may not have fully reviewed the information in the documents.

JPMorgan Chase (, ) and Bank of America (, ) have since said they too are halting foreclosures while they review their paperwork and procedures.

How many loans are affected?

The exact number isn't known. Chase has said 56,000 loans are affected, but Bank of American and Ally have not provided a figure.

It's likely hundreds of thousands of foreclosures are now in limbo. And the number could grow if more banks join the freeze. Politicians and state Attorneys General are calling on financial institutions to widen the review.

There are currently 5 million loans that are seriously delinquent or are in the initial stages of foreclosure.

Why is this happening in some states and not others?

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