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Let The Big Lender Foreclosure Madness Begin

By Randy Elliott

Real Estate Agent with RE/MAX Gold DRE# 01437147

October 01, 2010 03:25 PM

Another major lender has decided to stop foreclosures...for now. JP Morgan Chase will stop their foreclosure process on homes temporarily so they can review their files for errors. GMAC was the first big lender to do this.

Will this slow down the process or bring it to a grinding halt for much longer than they anticipate? If they're looking for errors, then perhaps it could take longer than they expect. I'm thinking that might be like looking for a needle in a needle stack.

Will this slow down the Short Sale process in cities like Stockton, CA as well or will these big lenders put the skids on that as well?

I'll be right here on the edge of my seat waiting for the chips to fall, spaghetti to stick, or any other way with great anticipation.

What do you think this will do to our current timelines that already seem to last longer than a Texas mile? Do you think there will be a major increase in lawsuits as a result from all the upcoming confusion and discovered errors?

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Joan Whitebook

BHG The Masiello Group - Nashua, NH

Consumer Focused Real Estate Services

Oh my, this is going to be interesting to watch. I wonder what impact this will have on the overall recovery of the real estate market.

Oct 01, 2010 03:27 PM

Suzanne McLaughlin

Sabinske & Associates, Inc. (Albertville, St. Michael) - Saint Michael, MN

Sabinske & Associates, Realtor

I am pretty certain that it might speed up the short sale process actually. Since the two are connected by much other than whether they want to work with the homeowner, or the homeowner has given up.

Oct 01, 2010 03:29 PM

Sharon Alters

Coldwell Banker Vanguard Realty - 904-673-2308 - Fleming Island, FL

Realtor - Homes for Sale Fleming Island FL

We have a short sale in pre-foreclosure with Chase and their representative today told us that nothing had changed with their file.

Randy Elliott

RE/MAX Gold - Lodi, CA

REALTOR : Lodi / Stockton, CA

Joan, I don't know if this will be like a scary movie where you cover your eyes and look through your fingers, or what!

Suzanne, I'm hoping that you're right and this will have a positive impact on the short sale process.

Oct 01, 2010 03:31 PM

Sharon & Frank: maybe nothing's changed because nothing's being done? :-) I've got a short sale in Modesto, CA going on now where the 1st and 2nd are both Chase. I wish both of us luck!

Oct 01, 2010 03:36 PM

Sarah Rummage

Benchmark Realty LLC, Nashville TN 615.516.5233 - Nashville, TN

Love Being Realtor® in the Nashville TN Area!

I have been wondering how this will affect us. Didn't I read that 7 or 8 more banks today joined the 'hold off on foreclosing' club?

Sarah

Oct 01, 2010 03:58 PM

Ted J. Macy

Top Agents Atlanta Metro - Milton, GA

I believe this will cause this entire mess to take longer to work itself out. Just think, I could be in my ninth decade before it is all cleaned up and I am in my seventh now,

May the Almighty help us all.

Oct 01, 2010 04:31 PM

John Pusa

Glendale, CA

Randy - Foreclosure delays will probably have some impact on the market.

Oct 01, 2010 05:06 PM

Sarah, I've read that more are to jump in, but haven't heard who.

Ted, 7th decade? Would've never guessed!

John, I'm thinking that's a simple way of looking at it, but yes.

Oct 01, 2010 07:09 PM

Jack Mossman - The Nines Team at Keller Williams in Stockton

The Nines Team At Keller Williams - Stockton, CA

The Nines Team at Keller Williams in Stockton

Randy - I'm not sure that the foreclosure "abyss" and the short-sale "cavern" have much in common, other than the name of the bank. So much of the foreclosure process is vested in "servicers" while the short sales are more likely to be bank employees. But then again, that's this week ....

Oct 02, 2010 01:30 PM

Hey Jack, that movie: The Abyss, was really scary at times. I wonder of there's any correlation? Was there a part 2, so we know how this will end?

Oct 03, 2010 08:46 AM

Tony and Suzanne Marriott, Associate Brokers

Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ

Coldwell Banker Realty

The decision to pursue short sales rather than REOs was validated yet again in the past week, with the one two punch of the moratorium on Trustee Sales (no new inventory) coupled with the freeze on closing REO transactions that were already in contract with a Buyer (no closing, no revenue). It can't be a pretty picture for large REO teams with a large fixed overhead - and who knows when things will start moving again?

Oct 17, 2010 07:34 AM

Tony & Suzanne, I agree whole-heartedly. I had thought about venturing into the realm of REO's in the past, but am really glad that I didn't for the reasons you just mentioned. Thanks for your input!

Oct 17, 2010 01:59 PM

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Randy Elliott

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