Friday, October 08, 2010

Obama won't sign bill that would affect foreclosure proceedings

Obama won't sign bill that would affect foreclosure proceedings: "At least 10 states - with Iowa and Delaware being the latest - are seeking to expand a voluntary freeze on foreclosures by some of the nation's largest mortgage lenders to include more companies and more regions. And calls have increased for a nationwide moratorium - a move that could deal a blow to the earnings of big banks and grind to a halt the sale of millions of properties in foreclosure."
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I hear from real estate attorneys that banks have been holding off on foreclosing because they have too much REO property already and they can't sell it, so they don't want to acquire more and put it on the market, which would only drive prices down further. But even with that voluntary restraint, the foreclosure process is hopelessly glutted and gridlocked.

2 comments:

Fred Pilot said...

"I hear from real estate attorneys that banks have been holding off on foreclosing because they have too much REO property already and they can't sell it, so they don't want to acquire more and put it on the market, which would only drive prices down further. But even with that voluntary restraint, the foreclosure process is hopelessly glutted and gridlocked."

The foreclosure crisis has been described as a crisis for borrowers. It is now becoming apparent it's not just a crisis for borrowers but also for lenders. Unless there's some kind of global solution to this morass, economic pundits say it will exert a big drag on any recovery from the recession.

pvtgov said...

I underestand that if your current lender, who is foreclosing on your home, does not have the title to your home it cannot, by law, foreclose. Current practice, which is one aspect of this bill, is that the automated process serving and recordkeeping service, MERS, usually files the foreclosure notice but does not have the title. Check it out!!!