Foreclosure Moratoriums, Will they Help Defaulting Home Owners

The Attorney General of the State of Washington, and those of numerous other states, took action today regarding the current crisis in real estate foreclosures.  Rob McKenna, the Washington AG, put all foreclosure trustee service companies on notice, telling them to ensure that they are following the law in each and every foreclosure case, or not pursue the foreclosure further until they can.  While this does not amount to a governmentally imposed foreclosure moratorium, it may have the effect in a limited way.

Several large mortgage lenders have recently decided to voluntarily impose a moratorium on foreclosures until discrepancies in the way they are processed are resolved.  Reports on problems found with recent foreclosure proceedings show that most problems are a result of the sheer volume of foreclosure activity.  Bank employees signing documents by the thousands without reading them, notarizing signatures that... Read More about the latest foreclosure crisis at the Lewis-McChord Real Estate Guide.