As I’m sure you have heard, Bank of America recently announced that it is halting foreclosures in all 50 states in order to review the accuracy of its documentation. This is on the heals of several other banks doing the same. Recently I’ve had more people ask “What does it mean for us?” so I’ve put together some FAQ’s that may help:
I want to make
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As I’m sure you have heard, Bank of America recently announced that it is halting foreclosures in all 50 states in order to review the accuracy of its documentation. This is on the heals of several other banks doing the same. Recently I’ve had more people ask “What does it mean for us?” so I’ve put together some FAQ’s that may help:
I want to make an offer on a foreclosure, should I wait?
No, don’t wait. If that property is on the market as an REO or Bank Owned property, it won’t be affected. It has already gone through the process and it won’t be reviewed again.
I have a foreclosure under contract, will I be affected?
No. The moratorium may affect properties that are in the middle of the foreclosure or short-sale process but that even depends on the lender. Not all lenders are halting foreclosures.
I’m behind on my payments, will this extend the time I have to remain in my home?
Not by much, in Georgia, if at all. This will be a very quick process for the banks in our state because Georgia is a non-judicial foreclosure state. Basically that means the bank doesn’t have to take you to court in order to foreclosure. If you haven’t made payments then they can proceed with a foreclosure and will continue to do so.
Will this moratorium make our housing market better or worse?
That’s a harder question to answer, but here’s what I think we’ll see. The flow of foreclosures has been fairly steady in Metro Atlanta, and 25% of all sales are distressed sales. That number is higher or lower in various areas of Metro Atlanta. We may see a very short slow-down of new foreclosures hitting the market, with those numbers bumping back up after the beginning of 2011. But the drop and rise will be very modest and should not have a significant impact either way.
The Bottom Line
In the end, for Georgia, this moratorium has more of an impact on consumer confidence than it ultimately will on home sales. If anything good can come out of it, it would be banks doing a better job at working out loan modifications for home owners, but I’m not holding my breath.
Tags: Foreclosures