Foreclosure Freeze/Moratorium-Phoenix Arizona, Ahwatukee Arizona

Real Estate Agent with West USA Realty

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Foreclosure freeze-Phoenix Arizona, Ahwatukee Arizona.  

A nationwide moratorium (a legally authorized period of delay in the performance of a legal obligation or the payment of a debt), was induced after one of the largest banks, Bank of America, ceased foreclosures nationwide. The sound of a two week foreclosure moratorium, for a real estate agent and a client in process of a short sale might sound like a relief. It depends on how we look at Foreclosure Freezes and at what point in the process an agent and client are in an active contract; many times these freezes prevent or disrupt the process.

homeowner after wall street investors

What we have to keep in mind is what the common misconception of freezes/moratorium are:

  1. “The government will bail me out and send me a check or at least force the banks to do a principle reduction so I can stay in my home.”  Not very likely, and you have a better chance at winning the lottery, this freeze isn’t to help out the consumer as much as it is to cover bank liabilities (I will get into this shortly).
  2. “Does this mean I don’t have to deal with my mortgage, pay my mortgage?” We are adults, and I understand that many people are in bad situations; the truth is a short sale is the first step in putting the past behind you and starting a new life.  A new start means being more educated with our finances, seeking a financial advisor (if you can’t pay for one, check out Dave Ramsey, “Financial Peace University).  


As mentioned several weeks ago by the media, I must reiterate that this freeze is not to help the consumer as much as covering liabilities from investors who purchased many loans on Wall Street, and potential lawsuits from homeowners that might have been foreclosed on pre-maturely or fraudulently. 

bofa bank and people rallying in front of bank


Good news is that the banks are being watched with a careful eye by the White House Administration.  In addition and as quoted from a Washington official, the administration will monitor the foreclosure issue, expecting “lenders and servicers to follow the law and to fix any problems in their processes related to foreclosures.”

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