The Ripple Effect of The Abrupt Halt to Foreclosures
The lack of foresight in this decision is almost unbelievable. We need intelligence and leadership coming out of Washington and in the banking community. Every foreclosure was scrutinized by multiple layers within the lenders multiple departments. Nowhere are there more people involved than at Bank of America. The foreclosed upon people were not paying. They needed to be evicted and the home foreclosed upon. That there might be a technicality in which person signed off is absurb. The longer this halt continues, the longer it will take to clear out this massive inventory. Currently, we have buyers that will not even consider looking at either a short sale or a foreclosed property due to the uncertainty of having to deal with the lender, FNMA or Freddie MAC.
The ripple effect of the abrupt halt to foreclosures is far reaching. Here's just a partial list of those affected:
- Buyers
- Contractors who were going to repair the home. This alone has a massive effect on employment. Hard working Americans who build America are abruptly out of work, again.
- The entire manufacturing and supply chain of material needed to renovate repurchased foreclosed houses.
- Movers
- Closing attorneys
- Appraisers
- Appliance retailers and wholesalers and manufacturers
- Neighborhoods suffer more blight for an additional extended period of time.
- Owners who moved away and have to maintain the house. Some municipalities file criminal complaints against owners who don’t mow the grass or fix vandalism beyond their control.
- Owners who have to pay insurance on an unwanted home. Without insurance, the homeowner in limbo will be on their own if they’re sued by someone who gets injured on the property.
- This is just a brief and partial list of those who are immediately affected by this abrupt halt. The ripple effect of the foreclosure halt is far reaching.
- Realtors, especially Realtors who rely heavily on listing REO's.
The losses incurred by all those affected will cause more unemployment which will cause more foreclosures.
This foreclosure halt is truly a crisis within a crisis.
Who else have you noticed affected by this abrupt halt?
Dave Halpern
Real Estate Broker, Louisville Short Sale Expert Realtors
(502) 664-7827
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Sellers looking for foreclosure help in Louisville, KY should call Dave Halpern, Realtor, Louisville Short Sale Expert Realtors, (502) 664-7827. I will dedicate to you all the time you need for a full explanation of the process. We are compassionate, caring and patient. I will listen to your needs and wishes and customize a strategy to meet your circumstances.
I will provide you detailed information about foreclosure options and short sales. We help dozens of sellers avoid foreclosure every single year in Louisville, Jefferson County, Oldham County, Bullitt County, Shelby County, Nelson County and Spencer County.
We can help. You have options. Call even if you think your house isn't sellable. Put an expert real estate agent on your side. Many testimonials available.
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