How The Foreclosure Freeze Impacts Realtors and Buyers

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Mortgage and Lending with Stearns NMLS #232164 CA BRE #01380812 BRE 01380812 NMLS 232164

How the Foreclosure Freeze Impacts Realtors and Buyers  Bank Owned REO Sign

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.

 

UPDATE 10/18/10:

Click link below for article...

Bank of America and Fidelity National Title Reach Agreement for REOs

 


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Rainmaker
565,035
Steve, Joel & Steve A. Chain
Chain Real Estate Investments & Mortgage, Steve & Joel Chain - Cottonwood, CA

Mary Anne,

I agree; We were talking about his very subject this morning. It maybe a great time for sellers to sell if their market has a large number of REO's held up in this FC freeze.

Steve

Oct 18, 2010 01:02 PM #1
Rainmaker
53,782
Mary Anne S. Daly
Stearns NMLS #232164 CA BRE #01380812 - Mill Valley, CA
Queen of the Loan & Radio Broadcaster

Good point and I like how you've found a silver lining in this turn of events.

Oct 18, 2010 01:08 PM #2
Ambassador
3,049,499
Anna Banana Kruchten CRS, CRS, Broker, Instructor
HomeSmart Real Estate BR030809000 - Phoenix, AZ
602-380-4886

Mary Anne we've been thinking and working on this quite a bit last week or two.  So much more to be wary of for buyers.  My buyers are working with as many traditional sellers as we possible can - avoid the possible future problems.

Oct 18, 2010 01:10 PM #3
Ambassador
416,562
Emily Medvec
eXp Realty LLC - Santa Fe, NM
Realtor | Serving Santa Fe & Northern NM

Solid post on the new risks found in foreclosures. The new landscape of real estate is challenging enough without these new issues and the 50 state Attorney General investigation. The majority of my buyers are now steering away from these properties at the moment.

Oct 18, 2010 02:42 PM #4
Rainmaker
53,782
Mary Anne S. Daly
Stearns NMLS #232164 CA BRE #01380812 - Mill Valley, CA
Queen of the Loan & Radio Broadcaster

Thank you Anna and Emily for your comments.  It's definitely a hot topic.

Oct 18, 2010 03:08 PM #5
Rainer
169,878
Menlo Park Real Estate and Homes for Sale
Wende Schoof - Menlo Park, CA
WendeByTheBay.com - 650.504.0219 - SF Peninsula

Mary Anne, thank you for this succinct explanation of the title issue.  It's going to be interesting to see how this impacts the market over the next few months, isn't it?

Oct 19, 2010 01:55 AM #6
Rainmaker
53,782
Mary Anne S. Daly
Stearns NMLS #232164 CA BRE #01380812 - Mill Valley, CA
Queen of the Loan & Radio Broadcaster

You're welcome.  It will be interesting to see how this unfolds.

Oct 19, 2010 05:59 AM #7
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Rainmaker
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Mary Anne S. Daly

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