Foreclosure Moratorium to be Lifted

This week the Bank of America announced their self imposed 23 state foreclosure freeze will be lifted Monday October 25th.

Las Vegas ForeclosuresEarlier this month after JP Morgan Chase Bank and Ally Financial Inc. put a halt to evictions of property owners in default on their mortgages after rumors surfaced in several states that alleged that bank officers/employees were signing documents that may have contained errors. Bank of America soon followed suit and halted all property seizures as well.

In a statement release by Bank of America this past Monday, "Our initial assessment findings show the basis for our foreclosure decisions is accurate."

"Although the Moratorium was short lived, it did have an impact on the Las Vegas housing market as it made potential buyers uneasy about home purchases and Title Companies a bit skittish about writing Title Insurance." according to Las Vegas Realtor of the Realty One Group.

Ms Arcuri went on to state "Although Nevada was not listed as one of the 23 states the effect of temporarily putting the brakes on any foreclosures will send ripples throughout the already devastated real estate industry and will delay a full recovery.”

What this Las Vegas Real Estate Veteran is referring to is the fact that in order for the market to stabilize foreclosures are a necessary evil. Home owners simply cannot remain in homes that they cannot or will not pay their mortgages.

"It was the Housing Sector driven by out of control politically initiated Sub-Prime and "Liar" loans that caused our current recession. The economy simply cannot recover until the real estate industry does. It is time to finish the healing process." according to Ms .

  1. Completely agree. It is time to finish the healing process and to do that the housing market will lead the way. Hopefully we can start to turn the corner in 2011. By now I would hope all the bad news is out of the way. We’ll see.

    Thanks for posting this.

  2. Stemming foreclosures for a long time might give the economy a chance to recuperate before more “product” hits the market, but that is probably an unrealistic scenario. I hope for a quick healing!

  3. Gwen CrockerGwen Crocker12-03-2010

    I also completely agree, the housing market has got to improve for the rest of the healing process to take place. The St. Louis Real Estate market is showing signs of recovery but we are still along way off.

  4. One thing the banks have learned through all this is that they can be liable for their sloppy paperwork and lack of proper assignment of mortgage transfers. I have heard (Wells Fargo for one) that banks are bringing an indemnity agreement to the closing at the 11th hour to have buyers release them from any future title challenges.

    Buyer beware!

    Russ Fielden
    Broker-In-Charge
    Southern Coast Realty
    Beaufort, SC

  5. I have to agree with you and with Laura Arcuri, as painful as it is, we need to get the foreclosures in the pipeline and sold in order to return to a healthy market. Being a Florida Realtor, we have seen this glut of properties come on the market and sit in short sale situations. Once they go to foreclosure there is the possibility of a realistic price and of market movement. Thanks for your blog post.

  6. If a long term solution can not be found to avoid a foreclosure for an individual, what good can come from a short term solution? It negatively impacts the market, and holds individuals in that prediciment from moving on.

  7. I am also agreed with you guys, Hopefully we can start from 2011.
    Regards

  8. We certainly need to clear the Market of all the foreclosure in the pipe. It’s a painful process but one that needs to happen. The banks are working the short sale process a bite quicker in So Ca, the need to clear the inventory and get the market back to a free market and not one governed by the banks is still a way down the road.

  9. Came across this older post today. Very interesting to see how things have played out.

  10. Bob Lilley East Bay Area Homes For SaleBob Lilley East Bay Area Homes For Sale04-06-2011

    Moratorium or not, the foreclosures must be absorbed into the marketplace by real home buyers before we have any chance of seeing meaningful appreciation in our homes.

    I sell in the northern California area, and I can tell you that Bay Area homes for sale have taken a beating just like homes everywhere across the nation.

    When I look at Walnut Creek California homes today versus Walnut Creek CA homes for sale a few years ago, I can see an honest 25% decline in prices. Concord CA homes for sale and Pleasant Hill CA homes for sale are even harder hit.

    I think we should stop praying for a poorly filed piece of paperwork or a questionable signature to get us out of this debacle. Let’s sell the homes to REAL BUYERS with REAL JOBS and a REAL DOWN PAYMENT and be done with it.

  11. I just noticed that this is an old post, but all the same, it is interesting to learn how things are going in the US. How has 2011 been over there?

  12. Manhattan ScoutManhattan Scout03-28-2012

    It’s been a long time since the Bank of America announced their self imposed 23 state foreclosure freeze will be lifted and yet the foreclosure boom isn’t over. Let’s just hope that the prices won’t increase that fast anymore and that the bank will be more careful by whom to give a mortgage. None of us wants a 2008 again.

  13. Carmen BrodeurCarmen Brodeur04-06-2012

    We just need to get through the foreclosure inventory in order to get back to a more normal market.

  14. Not only is the foeclosure boom not over, the abating backlog has actualy caued foreclosure rtates to climb in some areas. This ing is not over by a long shot, and some areas may feel the pinch for a decade or longer. Vegas is still gripped by foreclosure problems. I’, not in this market myself, but my mother in law has bought 2 investment properties in Summerlin and easilly rented them both to excellent tenants atr a profit.

    Thankfully for investors, the rental market remains solid in Vegas. One poblem she encountered as a small investor was fighting the large companies who are buying foreclosures in block of 10 – 100 at a time.

  15. Freda@Apartment RatingsFreda@Apartment Ratings04-17-2012

    I
    completely agree with this piece of information. Some concrete steps must be
    taken so as to improve the prospects of the housing market. However, the
    situation is not that worse as it was in 2008 which is a positive sign, but
    certainly needs to improve a lot more. .
     

  16. Carla MartinCarla Martin05-02-2012

    hi,
    I am new to your blog but loving it as its so informative and interesting. thanks for sharing and just keep it up the great work.home improvement

  17. G PenafloridaG Penaflorida06-28-2012

    It is good that the Bank takes an action regarding some errors or steps  in foreclosures. Hope it would have some full recovery regarding the matter.

  18. Great article!  I’m just outside of Philadelphia, in Bucks County area.  In Philadelphia, foreclosure rate is through the roof, but in Bucks County, we just don’t have too many of them.  We have quite a few short sales, but not too many foreclosures.

  19. Abie SmithAbie Smith04-01-2013
  20. Federal Home BuyersFederal Home Buyers06-10-2013

    market is finally picking up all over – good news!

    Sell Your Home Fast in DC with Federal Home Buyers
    http://www.federalhomebuyers.com

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