In the past 3 days there has been a lot in the press about the foreclosure freeze and its affect both globally and locally. Here is an update from Monday’s blog post.
Banks and mortgage services are working at a fast pace to determine if they have any internal processing issues. Some banks, such as Bank of America, have completed their initial review in judicial states and have found the “underlying facts supporting foreclosures to be accurate.”
Banks are also reaching out to buyers under contract on previously foreclosed properties and asking for 90 day contract extensions while they ensure that the paperwork is in order and the title is clear.
The majority agree that buyers of foreclosed properties will face delays and sellers in the foreclosure process will have to both modify their loans and reside in their homes for a longer period of time. But it appears that the banks are moving quickly to get issues resolved so they can keep the processes moving forward. The potential cost to the banks for delays could be in the billions so it is in their financial interest to get the investigations underway and completed.