How Will the Foreclosure Halt Affect Me
With the announcement by Bank of America to cease their foreclosure proceedings while they re-assess the fairness of their methods as well as to make sure there are no practices currently in place that could be deemed "predatory", many homeowners are wondering: how will the foreclosure halt affect me?
If you currently own a home through Bank of America and are facing foreclosure, your foreclosure is in a temporary holding pattern. If you are trying to purchase a foreclosure through Bank of America, you are also on hold until Bank of America sorts through their past foreclosure practices and find out the official outcome of a federal hearing about the issue on November 16, 2010.
Bank of America's temporary halting of foreclosures was in direct response to an investigation being performed by several attorney generals across the country looking into the possible "rubber stamping" of foreclosures in the recent past. There are also allegations that mortgage companies have hired people with no qualifications in the past whose whole job was to automatically send through thousands of foreclosures every month.
If you are currently going through a foreclosure or have purchased a foreclosure, you would be well advised to speak to a real estate attorney to find out what your rights are at this time. If you're a homeowner who is facing foreclosure, you will want to make sure your mortgage paperwork is correct and on the "up and up". If you have purchased a foreclosure, your property may be caught up in legal issues regarding how the foreclosure was handled before it went up for sale. It is possible that the former homeowners may seek restitution from mortgage companies who are found guilty of performing fraudulent foreclosure activities.
The National Association of REALTORS® believes that halting all foreclosures, even temporarily, is not necessarily the best course of action to take. Valid foreclosures shouldn't be lumped in with the foreclosures that may be suspect because the real estate market is already tenuous at the moment. This would just throw even more anxiety and stress onto homeowners when it isn't necessary.
If you have any questions about how the foreclosure halt will affect you, whether you lost a home in foreclosure, bought a home in foreclosure or are currently facing foreclosure, please don't hesitate to contact me. I am a Certified Distressed Property Expert and can help you with all your Reno real estate needs.
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