Foreclosures Slow?

Bank of America, GMAC, and JP Morgan suspended foreclosure proceedings in 23 states 2 weeks ago while their practices were being reviewed. Bank executives have admitted that they often just sign the documents put across their desks and don’t read them due to the volume that pass through their offices, approving foreclosures without even evaluating or verifying all the documents. As of yesterday, GMAC and Bank of America have lifted the temporary freezes on their foreclosure processes. Bank of America is planning to re-file paperwork in over 100,000 foreclosure cases.

 

But according to some news reports, some 30,000 foreclosure cases will be delayed.

 

What does this mean for the overall real estate market though? Well it is a bit too early to tell at this point, but it looks like full steam ahead in most areas. Many investors have come back into the market, taking advantage of the opportunistic prices and the record low interest rates. As an agent who works with lots of investor clients, I wonder if this will mean that there are less opportunities available to them in the immediate future. I also work with many sellers though too, and I can see how they would appreciate having less bank-owned properties on the market as competition decreasing their values.

 

A prolonged review process could have hurt the nation’s economic recovery, and delay purchases for many buyers looking to fulfill their dream of home-ownership. This market is a perfect opportunity for many hard-working families and individuals, who were priced-out during the housing boom of a few years ago, to finally be able to purchase.

 

It would have been wrong for them not to be able to fulfill their dreams!