Bank of America is currently sitting on $1.4 billion of real estate it acquired upon foreclosure of delinquent FHA-insured loans. The properties are not included in BofA’s inventory of foreclosed properties at June 30, 2011, but remain on the bank’s balance sheet until they are conveyed to the FHA, the bank disclosed in its 2Q11 filings. BofA expects to be reimbursed once the properties are transferred to the FHA for principal and, up to a certain limit, costs incurred during the foreclosure process and interest incurred during the holding period. The bank suspended its foreclosure activities in October 2010 as it began a...