The real estate industry is bananas. And every time I read the newspaper, it seems like the sh^& is really hitting the fan. Foreclosures are now being stopped at Bank of America in all fifty states (the entire nation) according to articles in both the Wall Street Journal and dsnews.
If you have not been following all of this foreclosure and pre-foreclosure drama over the last few days, here’s a synopsis. A few weeks back, GMAC halted judicial foreclosures in 23 states because they had neglected the validity of the foreclosure prior to its occurrence. A day or so later, JP Morgan Chase followed suit. Then, on October 1, 2010, Bank of America also halted judicial foreclosures in 23 states—those that use judicial vs. non-judicial foreclosure.
At that time, the OCC requested that seven major lending institutions (including the three mentioned above) review their foreclosures in order to assure their validity. Then, wham, bam, BOOM… Bank of America now is halting foreclosures in all 50 states in order to confirm that each and every foreclosure is a valid one.
The halt on foreclosures at Bank of America begins on October 9, 2010 and will not cease until they have reviewed all of their documents. Know however, that while foreclosures may not occur during this period, a spokesman from Bank of America states that foreclosure proceedings will continue. This means that the bank may still file a Notice of Default or a Notice of Trustee’s Sale during their review period.
This news brings a bit of a reprieve to borrowers who are close to foreclosure but are having trouble with the short sale process. With foreclosure off the table temporarily, now is a good time to get your short sale property listed and sold in a quick and efficient manner.
To learn more about what’s going on in the foreclosure arena, check out these posts: