In a statement released Friday, Bank of America said it will stop foreclosure sales until “our assessment has been satisfactorily completed. Our ongoing assessment shows the basis for foreclosure decisions is accurate. We continue to serve the interests of our customers, investors and communities. Providing solutions for distressed homeowners remains our primary focus.”
Where as several other financial institutions have halted foreclosure proceedings in many states due to the paperwork debacle, BoA is halting proceedings in all 50 states and is also halting the sales of foreclosed inventory that is currently listed. There is speculation that other banks may follow suit.
So what's the impact? According to msnbc.com the BofA halts will go into effect on Saturday. Without knowing exactly how they will proceed, I think it's safe to say that their existing inventory will be pulled from the market. Most bank owned homes listed in the MLS do not show which bank is the true owner of the property so it is difficult to say how many properties may be affected in our area. There are currently 651 bank owned listings in Snohomish County, with 188 of those in Everett.
The other issue is with BofA properties currently under contract. I haven't seen anything mentioned about how these will be handled but I suspect that closing will be delayed. The big question is will they attempt to charge per diems for these transactions?
If you currently have a REO under contract, expect a phone call from me shortly!
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