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Bank of America to resume foreclosures

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Real Estate Agent with Keller Williams San Diego Metro 01785713

 

Bank of America Resumes Foreclosures

Say it isn't so Bank of America is set to resume foreclosures.  I was shocked to see it when the news alert crossed my smart phone about 3 this afternoon.  My jaw dropped.  It's not that I expected the halt to last forever, however, I did expect it to last longer than a week.  However, B of A's decision to halt foreclosures did come as some relief to my sellers.

You can imagine after the news came out my phone was blowing up with calls from all my sellers who have loans serviced with B of A.  I assured them that if there was a silver lining for them is today's decision doesn't affect them. You see, we are among the 27 states where B of A isn't foreclosing. That brought some relief however that could change any day.  

According to the blogs, TV and online media, Bank of America will begin foreclosures in 23 judicial foreclosure states.  The remaining 27 non-judicial foreclosure states will remain on hold, for now.  

It appears Bank of America feels confident in its procedures to foreclose on properties in those 23 states which requires a judge's approval. 

So what does that mean for the rest of the country?  I wish we had a crystal ball to figure it all out.  It's a shame that banks can't first help homeowners to try to retain their properties. It's too bad loan modifications are just a temporary fix that just pave the way a short sale or foreclosure.  I'm not singling out Bank of America here, I'm speaking to all banks. One thing I know for sure:  The housing crisis won't level itself out until we can get unemployment under control.  That's another blog post.  

Comments(48)

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Ben Benita
Ben Benita - Gainesville, VA
Speaker, Author, Game Changer, Coach

Thanks for the valuable info

Oct 19, 2010 02:19 AM
Phil Stevenson, CRMP
PS Mortgage Lending 305-791-4874 or 888-845-6630 - Miami, FL
"Mortgage Nerd" in Miami, Florida and Texas

and of course there are now conflicting reports stating that the AGs for each state will halt ALL foreclosures.  Its crazy!

Oct 19, 2010 02:45 AM
MJ Anton
Ormond Beach, FL

definitely not a surprise...the backlog would have delayed the foreclosures through the holidays, and that would be some ugly pub for BofA

Peace in the Neighborhood is possible through Mortgage Note Reduction

Oct 19, 2010 02:46 AM
Kate McQueen
Realty Associates Texas - Cypress, TX
Tailored service for your real estate needs!

I'm sure there were some homeowners that are happy that they have more time to perhaps get their home sold before they are in foreclosure.  But for the rest of those homeowners that are in or about to be in default, why prolong the pain!  Getting it over and done with is probably better for their health, since they can move on and focus on the future.

Oct 19, 2010 02:53 AM
Lori Cain
Own Tulsa - Tulsa, OK
Midtown Tulsa Real Estate Top Producer

Wow - that was a short-lived LOVE FEST.  I knew it wouldn't last long, but one week???

Oct 19, 2010 03:00 AM
Christa Ross
RE/MAX Select Realty - REALTOR and Green Homes Specialist - Pittsburgh, PA
Helping you buy and sell Pittsburgh's Best Homes

I think it's a good thing. So many foreclosures on the market just continue to depress prices for everyone. The sooner we clear them out the better. From what I understand much of this was about poor paperwork review, not necessarily that the homeowners weren't behind on their payments. It's tough but we gotta play out the hand until we get to the other side.

Oct 19, 2010 03:10 AM
Karen Fiddler, Broker/Owner
Karen Parsons-Fiddler, Broker 949-510-2395 - Mission Viejo, CA
Orange County & Lake Arrowhead, CA (949)510-2395

It's just a postponement, so the quicker they can get them cleared out, the better for everyone. Sad situation, but delay is not the answer.

Oct 19, 2010 03:13 AM
Heidi Hovatter - Sonora & Twain Harte
Sonora, CA
Heidi The Home Hunter

This was short lived...let's see how long until the lift it in the other states.

Oct 19, 2010 04:47 AM
Amy Law
Alliance Properties - Crosby, TX

In the meantime the phone is NOT ringing. No one seems to be brave enough to tackle a real estate transaction. They would rather wait. Yet, now is the time.

Oct 19, 2010 04:56 AM
Mike Morrison
Will & Will Real Estate Brokers, The Woodlands, Texas - Houston, TX

What choice does BoA, Chase, Wells Fargo, GMAC, PHC, Citi, Fannie & Freddie have other than business as usual? If the audit went further along, the public would become aware of the obvious; ALL the TBTF BANKS ARE INSOLVENT along with Fannie & Freddie. Get Ready for TARP 2.

Oct 19, 2010 05:16 AM
Kevin Dwyer
Sellstate Next Generation - San Diego, CA

The propoganda machine for B of A is in full force this morning. News reports all over the internet saying how they lost $7.3 billion in the 3rd quarter. Uh-huh. They're borrowing money from the Fed at 0% reloaning it at 4-5%, processing foreclosures at a frantic rate and passing along the legal fees to the investors and not releasing these bad assets to the market so they can take the tax write off. Sure...you lost $7.3 billion.

Oct 19, 2010 05:40 AM
Susan Gaddis
Coastal Properties Group International - Clearwater Beach, FL
Concierge Level Service For ALL

i don't think we have seen the end of the troubles with the process

Oct 19, 2010 05:56 AM
Mark Quaintance
Windermere Real Estate - Utah - Draper, UT

This all goes to show that we need to be adaptable and able to move with the market.  It is also good to  be current on everything to look out for our clients best interest.  Thanks for the post.

Oct 19, 2010 05:59 AM
Tom Brannigan
Long & Foster Real Estate, Inc - Wheaton, MD

They reviewed 100,000+ files in a week and they're confident in their process..........SURE, I believe that.

Oct 19, 2010 06:11 AM
Lana Robbins Realtor ® Licensed Real Estate Broker
Aloha Kai Real Estate - Clearwater, FL
Licensed in Florida, Washington, and Hawai'i

Hi Chris. At least in Florida the Attorney General is still on them. Just recently releasing depositions regarding a law firm accused of fraud. I am not at all surprised that they are resuming foreclosing on 100,000 or so homes. They have way too much power and control due in part to some politicians who allow them to do this to people.

Oct 19, 2010 06:35 AM
Richard Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Anything this company does is tainted....Please, I have said it more than once. Do not do business with this company if you can help it....They are not a solution but a living throbbing problem that never goes away...yuck....

Oct 19, 2010 08:13 AM
Mike Marroquin
Taylor Morrison Home Funding - Henderson, NV

They have to keep a "business as usual" appearance for shareholder value.

Oct 19, 2010 09:03 AM
Mike Marroquin
Taylor Morrison Home Funding - Henderson, NV

They have to keep a "business as usual" appearance for shareholder value.

Oct 19, 2010 09:03 AM
Norma Toering Broker for Palos Verdes and Beach Cities
Charlemagne International Properties - Rancho Palos Verdes, CA
Palos Verdes Luxury Homes in L.A.

I so agree with Michael (#50).  They also know if the courts/judges made the decision there is a layer of protection.  Not so in the non-judicial states.

Oct 19, 2010 11:33 AM
Jen Edwards
RE/MAX Unlimited - Ponte Vedra Beach, FL
Broker Associate

I'll believe it when I see it! 

Oct 19, 2010 02:45 PM