Halt on Foreclosures- In Laymans Terms-Massachusetts Real Estate and Homes for Sale Somerset, Taunton Rehoboth
Okay, here we go.. this is how I see it:
Round 1
2004-2006- Mortgages were passed out like candy..i.e. fog a mirror-buy a house. The types of loans given were no doc, no job, no assets, no credit.. NINA Loans, 80-20 loans, 100% financing. Starter Rates wtih high adjustables Banks were lending money based on nothing. How in the world did they expect not to be found out? The investors who funded them were in the CDO business (mortgage backed securities) being sold on wall street.
Esssentially the new home owner would close on their new loan. The loan would be sold to an investor,many times prior to the first payment being received!
The investor then would package up the loan with other loans and sell off to another investor in the form of a portfolio..sometimes at a discount. Then that investor would sell the portfolio again and again. Thus creating this mess. Losing then original note, not discharging the loans properly.
Round 2- 2007-present- My mother in law always said "Your sins always find you out". As the Taunton market started to decline, homeowners equity dissipated. No more serial refi's. Many loans have astronomoically new higher interest rates which was a result of the adjustable rate adjustiing. Several loan officers promised home owners that "it would be okay" or " you can always refi", well THAT was not the case at all. And now in the Taunton Area one of 5 homes is upside down in equity. Thousands and thousands of homeowners were foreclosed on. In late 2008 and early 2009, foreclosed homes were plentiful and a candy store for investors and others. Because part of my business is foreclosures, I have seen some of the documents at the registry of deeds. some with cross-outs, re-dos, and unrecorded discharges. This led me to wonder how the banks were getting away with this sloppiness, and how could they possibly deliver clear title on some of these homes?
Enter 2010- Everyone around me in this business is parroting this "Tsunami of foreclosures" "Shadow Inventory will be released in fourth quarter 2010". I never once believed this! I would say, no they cannot continue to foreclose, they are doing it wrong. The assignments aren't recorded properly.
I knew that we were close to something else.. another big bank debacle or alleged fraud.
So as of this date, October 7, 2010, I am not surprised or shocked by the halt on foreclosures. 4 big banks have put it all on hold in 23 states. I do believe that Massachusetts and the non-judicial states will also be granted a moratoreum of sorts on all foreclosures, including pending transactions.
Buyers should do their due dilegence prior to any home purchase in the Taunton MA area. Hire an attorney to do a title an accurate and complete title search, and be sure the home is eligible for title insurance.
for more information about the halt on foreclosures go to:
http://www.boston.com/realestate/news/articles/2010/10/06/coakley_asks_for_foreclosure_moratorium/
Call or text me at 508-878-0917 if you have questions. If I cannot answer your questions, I will refer you to an attorney that can.
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