So now what with the foreclosure moratoriums?

By
Real Estate Agent with Paradise Properties of Florida, Inc.

So now what with the foreclosure moratoriums?

I suppose everybody has heard about the short sale foreclosure auction moratoriums by now.  Will more Lenders join in out of moral conscience?  Or because a government entitly or the President 'points a finger'?  Or not.  another quandry and major disruption in the Recovery.

I'm glad foreclosures are halting or at least slowing down... for the sake of the people losing their homes.  At least they will gain a little time (maybe 30 to 90 days extra) to re-group.  And fight, if they are so inclined.  But I'm also concerned that the nice supply of REO (Real Estate Owned, bank-owned or Corperate owned )  properties for sale- will dry up.  What will the buyers do ???????????????

REO's are currently the biggest source of inventory, especially for forst time home buyers.  But we have relocaters, baby boomers, investors are dipping in to the supply of REO's which has been ever increasing.  These properties are actually easier to sell (I am speaking as a Realtor now.)  But, they are also easier and faster to buy, than short sales.  and there are some genuine bargains out there.  (I'm speaking as a Realtor in Palm Beach, Florida.

 

                                                                      

 

So, what do you all think will happen in the weeks and months to come?

Marsha Montoya Mayer- Realtor

Paradise Properties of Florida, Inc.

Email: marsha@mypalmbeachrealty.com  Cell: 561-329-0428

www..palmbeachdeal.com

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Condo Specialists
All Real Estate - Today and Tomorrow
Tags:
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Rainmaker
611,503
Todd & Devona Garrigus
Garrigus Real Estate - Beaumont, CA
Broker / REALTORS®

Marsha - Out here in California, short sales by far are the market majority. This foreclosure halt will definitely change the game once again!

Oct 08, 2010 04:09 PM #1
Rainer
65,082
Stephen Sainte-Martin
Realty Direct Boston - Boston, MA

Pardon me not commenting on the topic at hand, but that picture of the hand painted Zebra is just breathtaking.  Great photo.  Thanks for sharing.

Stephen

Oct 08, 2010 04:11 PM #2
Rainer
103,794
Amanda Nicodemus
Spring Texas Keller Williams Professionals - Cypresswood - Spring, TX
Spring Texas Real Estate www.amandahomes.com

The halt on foreclosures is going to slow down the real estate market even more.  Investors that are looking for a 'good deal' will now be weary of future foreclosures.

Oct 08, 2010 04:17 PM #3
Rainer
39,572
Marsha Montoya Mayer
Paradise Properties of Florida, Inc. - Palm Beach, FL

Stephen, I like your portrait also.  Is that a self-portrait?

The halt in foreclosures is not industry wide.  Do you think it will be imposed by all major lenders?

 

Oct 08, 2010 04:24 PM #4
Rainmaker
165,123
Valerie Crowell
Keller Williams - Walnut Creek, CA
Broker Associate

I think it will be halted by the ones that know their paperwork is bad. 

I see the whole thing is a plus plus.  Plus for the distressed homeowner who can now short sale their home without the looming threat of foreclosure over their heads and plus for the equity seller who doesn't have to compete with a glutted market soiled by REO's.

Oct 11, 2010 02:41 AM #5
Rainer
39,572
Marsha Montoya Mayer
Paradise Properties of Florida, Inc. - Palm Beach, FL

Valerie,

Well put, Valerie.  Do you think that any bank has been totally scrupulous in minding their paperwork?  I heard that some Florida title companies are now stopping the closing paperwork for approved REO's out of fear.

I wonder if that will spread to short sale closings.

Oct 11, 2010 02:48 AM #6
Rainmaker
165,123
Valerie Crowell
Keller Williams - Walnut Creek, CA
Broker Associate

In California things are a little different.  I spent 33 years in the title business so I have a pretty good idea of what's going on there.  Basically they underwrote the risk of the paperwork on the REO's expecting large banks such as Chase and BofA to have their ducks in order.  Ooopsie. 

WFB had the most via the World Savings/Wachovia unit.  But that Wachovia unit was IMHO the best in the nation.  I doubt they will have an issue.  Old Republic started it by refusing to do any more Chase REO's.  That says to me they have a claim that's bad enough to warrant the decision to stop taking Chase REO business. 

As far as short sale closings are concerned, I don't think it will matter.  It's not an adverse situation like a foreclosure, the homeowner is signing off on the transaction.

Oct 11, 2010 03:51 AM #7
Rainmaker
187,513
Beth Larsen
RE/MAX Sedona - Sedona, AZ
Sedona Arizona

Don't you think that maybe short sale servicers might be more likely to work short sales currently in process or grant postponements, possibly? At least this would slow their backlog down...give them time to catch up, give us time to get short sales completed???

Oct 11, 2010 04:55 AM #8
Rainer
39,572
Marsha Montoya Mayer
Paradise Properties of Florida, Inc. - Palm Beach, FL

Beth, I don't know if the lenders 'connect-the-dots'.  It certainly doesn't seem like they do.  And they are always like 90 days behind the current thinking...until policy catches up with reality.

Oct 11, 2010 05:58 AM #9
Rainer
39,572
Marsha Montoya Mayer
Paradise Properties of Florida, Inc. - Palm Beach, FL

Valerie,  you seem very knowledgable.  I have had alot of dealings with Wells fargo and Wachovia/Wells Fargo short sales.  W.F. has made alot of mistakes.  Their "Pick-a-pay" loan

 problems have caught up to the.  Why don't you think they will join in the moratorium, as well?

Oct 11, 2010 06:01 AM #10
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