The Texas Attorney General has taken action against banks here very recently with regard to foreclosures. Here are some Frequently Asked Questions and Answers:
What is the Texas Attorney General doing regarding foreclosures?
What is a demand letter?
How will the banks respond?
How will the demand letter affect current transactions?
If an institution chooses to respond to the demand letter, then the transaction could be affected in various ways:
Foreclosures: Institutions that honor the AG's request will likely postpone foreclosures that have already been posted and will likely not post additional foreclosutes until the dispute has been resolved.
Foreclosed properties that are listed for sale: Institutions that honor the AG's request will likely not enter into a sales contract for a listed foreclosure until the dispute has been resolved.
Foreclosed properties that are under contract for sale: Institutions that honor the AG's request may delay closing a sales contract for a listed foreclosure under contract until the dispute has been resolved.
Short sales: Institutions that honor the AG's request may choose to delay closing on a pending short-sale transaction until the dispute has been resolved.
Evictions of persons residing in previously foreclosed upon properties: Institutions that honor the AG's request will likely not evict previous homeowners who continue to live in the foreclosed house until the dispute has been resolved. The institutions could, however, attempt to convince the occupant to leave the property by offering cash for keys.
Commercial vs. residential properties: The demand letter makes no distinction between commercial and residential properties.
So for foreclosed homes in Texas, definitely in a holding pattern for the moment!!
It may be a GREAT opportunity to LIST a property now with the law of supply and demand as ALL the foreclosed properties seem to have been FROZEN out for the moment.
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