How the Foreclosure Freeze Impacts Realtors and Buyers
Realtors & Buyers: If you have a buyer making an offer on an REO, you'll want to contact the title company immediately to find out how the bank foreclosed on the property and if the title company is able to issue title insurance.
Good: If the home was taken back by "Deed In Lieu of Foreclosure", then there should not be an issue, according to our underwriters as of this posting.
Questionable: If the house was taken back by "Foreclosure", the house may not be currently saleable due to the moratorium on foreclosures, even if the house is already listed.
This is a serious issue and you don't want to go into contract only to find out that the property cannot currently be covered by title insurance.
It will get sorted out, but until it does, look out for your buyers and yourselves by doing your due diligence.
Email me for an in depth look at why this is happending by John Mauldin, a well known financial writer who has 1.5 Million subscribers to his newsletter.
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