Foreclosure Freeze
By: Foreclosure Freeze
The long-term implications of the foreclosure freeze are not looking good. Only a month ago, market analysts predicted that a housing recovery would be well under way by the third quarter of next year. Now analysts believe the foreclosure freeze could prolong the housing depression for at least a few more years. The alleged document fraud and robo-signing could open up the entire chain of foreclosure proceedings to legal challenge. Some foreclosures could be overturned, others found to be fraudulent.
Invalid foreclosures by select lenders may become difficult to challenge as a result of a new bill that has been passed by the Senate and was awaiting signature by the president. The bill, known as the Interstate Recognition of Notarizations Act, would require courts reviewing foreclosure initiations to accept notarizations of documents from large out-of-state companies without first validating their authenticity. Before a housing recovery can occur, all those foreclosed properties have to be re-scrutinized by the banks and then sold once again. With any foreclosure related deal open to legal challenge, that inventory could be taken off the market while the legal challenges make their way through the state courts. This does not to mention the questions being raised about missing paper trails on mortgages by homeowner's who have never missed a payment. What started as simple paperwork bungling in a Pennsylvania office park now threatens to bring to a standstill the nation's entire foreclosure industry.
The development is especially troubling given how large the foreclosure market is. Before the scandal erupted, real estate professionals predicted that 41 percent of residential sales this year would be on distressed properties. Typically, distressed properties account for 7 percent. Since housing is the fuel that in the past seven recessions has pulled the economy out of recession, any further damage couldn't come at a worse time.
About the Author
Aaron Marshall - Real Estate Reporter
www.usforeclosurefreeze.com
Blog.usforeclosurefreeze.com (ArticlesBase SC #3458194)
Article Source: http://www.articlesbase.com/ - Foreclosure Freeze
This is a great chance to make some real money. I for one am very excited about this freeze.
Mass. judges just nailed Wells and US Bank for lying with "robo" signatures on foreclosures
where the houses have been sold to new owners. Damages are in store for the losing homeowners. Banks are spooked. I''ll bet "short sales" will be the boom market for 2011
David Cooper