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Banks halt foreclosures, this may help everyone except those losing their homes!

By
Real Estate Agent with Summit Real Estate Group BRE# 01215778

It looks as though the long expected flood of foreclosures, also called the shadow inventory, has once again been put on hold.  There are irregularities in the title of many foreclosure properties and this must be dealt with prior to releasing homes by the banks.  This is a reprieve for those in foreclosure and may allow them a place to live for free for an extended period of time.

Following are some of the results of this delay:

  • Lenders may finally work to unload properties easier as a Short Sale allowing more home owners avoid a Foreclosure on their record.
  • There may be less distress sales and more Standard Sale home which will sell at a higher price.
  • Home Owners that are up to date with their mortgage may benefit from higher home values.
  • Lenders may be able to hold on to properties long enough for consumer confidence to increase, more people being put back to work and eventually unload the shadow inventory easier at a higher price.
  • The U. S. Government may be able to avoid another bailout or stimulus package.
  • Interest Rates will most likely rise sooner and the U. S. Government may be able to stop supplementing the interest rates.
  • Property Taxes should then increase and State may be able to balance their budgets sooner.
  • The increase in property value should  prevent many home owners that are on the ropes from losing their homes to foreclosure.
  • Businesses that depend on consumer confidence should begin to increase sales and profits.

Unfortunately, it seems as though most people that are already under water will still lose their homes.  My heart bleeds for my fellow Americans as they are the victim not the cause!

Your Friend & Realtor,

Tony Lewis * RE/MAX of Valencia www.TonyLewis.com tonyglewis@yahoo.com 661-702-4720

Comments (6)

Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Tony, I am afraid this is a legal thing, and not a market thing, so I do not expect a lot from a legal thing. Instead of getting over with it, and move forward, this is simply a serious delay in otherwise natural process.

I do  not think it is beneficial for the overall market

Oct 09, 2010 04:17 PM
Don Wixom
RE/MAX Executives Nampa, ID - Nampa, ID
"Looking out for your next move..."tm

Tony, interesting ammunition for thinking... I'm not so optimistic, like I usually am... I hope for the best!

Oct 09, 2010 04:18 PM
Allison Stewart
St.Cloud Homes - Saint Cloud, FL
St. Cloud Fl Realtor, Osceola County Real Estate 407-616-9904

Hi Tony

The freeze will stall the inevitable in most cases, once penalties and fees are imposed it places someone already behind in making their payments inthe untenable situation of not being able to pay the penalties-which pushes them further into the process.

More disturbing is that home owners seeking short salesd, who are communicating with the banks are being told in order to qualify they must miss 2-3 payments, which of course palces them in jeopardy of pendng foreclosure action.  If the short sale price does not work, they are that much further behind. The problem as I understand it, is that banks have rushed to foreclose and in some cases have taken property that they were not entitled to take. 

The banks appear to running amuck lately, like a freight train with no engineer at the helm.

Oct 09, 2010 11:35 PM
Mike Saunders
Retired - Athens, GA

Tony - I see little positive in this. This will reduce the number of people purchasing REO's because of fear of loss of investment.

Oct 10, 2010 02:20 AM
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

This is hurting buyers all over the place.  many have already sold a home or given notice on thier rentals and now have been told they won't be closing. 

Oct 10, 2010 02:26 PM
Tony Lewis
Summit Real Estate Group - Valencia, CA
Summit Real Estate Group Valencia & Aliso Viejo

I didn't think the freeze would affect the homes that are already Bank Owned.  This is not good news!

Oct 10, 2010 05:43 PM