It will be business as usual for buyers and sellers of properties under residential foreclosures listings in Tennessee despite the ongoing nationwide investigation into the foreclosure practices of lenders and banks, experts have stated. According to housing market analysts, the effect will be minimal and temporary for the state's residential property industry.
Real estate experts have asserted that Memphis foreclosure listings and foreclosed property listings in various areas of the state will continue to do business as before and homeowners facing threats of foreclosures will still have to deal with the problem because the moratorium and the nationwide probe will not have any major impact on the area.
Industry experts have explained that this is so because Tennessee home foreclosures did not really gain much traction in the state and Tennessee has escaped the worst of the housing market crisis that has hit most of the areas of the U.S. In addition, Tennessee follows the non-judicial process of handling foreclosure cases, which means that the moratorium will not be fully applied to the region.
Despite these scenarios, Attorney General Bob Cooper has decided to join other state AGs all around the country to investigate mortgage companies' policies with regards to properties under residential foreclosures listings. The nationwide investigation, which is also participated by mortgage industry and bank regulators, aims to determine whether mortgage firms' processes in foreclosing properties are legal and valid.
Although Tennessee is not directly affected by the robo-signing controversy since it follows a non-judicial procedure for processing real estate under foreclosed properties listings, sources from the state's AG Office have revealed that the decision to join the nationwide investigation was prompted by the desire to find out if there is an existing problem in the foreclosure policies of the state.
The ongoing controversy surrounding mortgage firms that have been accused of rushing foreclosure processing, with employees allegedly not even reading documents before signing them, will only be felt in certain areas of Tennessee and only minimally.
Only those with mortgages handled by Ally Financial and Bank of America will experience some ripple effect since both lenders have decided to include all U.S. states in their moratorium, regardless of whether they follow the judicial process or not in processing properties under residential foreclosures listings.
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