The foreclosure mess threatened to become full-blown chaos Friday as the nation's largest bank, Bank of America, halted all
foreclosure procedures nationwide, raising the pressure on other lenders to do
the same.
Bank of America is the first U.S. bank to institute a nationwide moratorium on foreclosures as anger grows at how lenders
have prepared documents to support evictions. The halt on foreclosures will take
effect on Saturday and also includes sales of foreclosed property.
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I have submitted a short sale with BOA and keeping notes on the process from beginning to hopefully a end.
At the moment all this forclosures crazyness in the news is just to wild for the average homeowner to comprehend.
Here in California the news is like a 2 sided sword, we are one of the foreclosures heaven states. Inventory, Inventory(trustee sale state). Which puzzles me how BOA can act like all 50 states are the same. Some homeowners that are not in forclosure are afraid that they are thown in the pot because market values may tank just to move the Inventory on top of Inventory when this madness come to a halt. It is like permeate of the housing markets. It is passing through and could cause side effects.
This is great for all the PRE-FORECLOSURE inventory we have! Continue to close short sales while you have this window of opportunity. If you remember, BofA and PNC were two of the major players in buying up the notes of many subprime lenders as well as assuming failed bank assets. The ugly side of this is the exceptionally high delinquent notes as well as fraudulent ones.
Speeding up the process in financial markets via "rubber stamping" is a no-no in financial/investment markets. BTW it was done frequently during the mortgage boom, too, according to one former mortgage banker, I know. Individual analysts have argued that as much as 23% of mortgage loans may be fraudulent, which is why forensic audits are an important part to our short sale process, should we believe there is a descrepancy.
For the lenders halting foreclosure sales, files are now sitting there, work on yours, press the issues, negotiate hard and escalate...while the window is there, foreclosure is not an option for them, at this point in time.
I think this is all politics. This sadly is another attempt to show how Washington cares. They care about reelection. January we will have a record number of foreclosures.
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