While major lenders evaluate their foreclosure processes, delinquent and seriously delinquent homeowners now have more time to evaluate alternatives to foreclosure.
Itâ€™s hard to miss the news in real estate today: major lenders are investigating issues in their foreclosure processes. To date, GMAC (now Ally Financial), JPMorgan Chase, and Bank of America have announced foreclosure freezes to review how their companies are handling the process. While many lenders have stalled foreclosure procedures in roughly half the nation, Bank of America recently extended their freezes to all 50 states.
So, what does this mean for distressed homeowners and the agents who can help them? While these major lenders evaluate their foreclosure processes, delinquent and seriously delinquent homeowners now have more time to evaluate alternatives to foreclosure.
Itâ€™s important to note that time may be short in these foreclosure freezes. GMAC was even quoted as stating their halt could extend through the end of the year, but may be as short as a few weeks. B of A has communicated that their freeze may last until November 1st.
Nobody really knows the full implication of this news and how it will affect the already distressed housing market.
For homeowners who are at foreclosure’s door, it may provide a small window of opportunity to seek a solution that has more benefits than foreclosure. For buyers who are engaged in an active sale, it may or may not extend the time it takes to close the sale.
As always, being on either side of these types of real estate transactions requires patience and a thorough understanding of the dynamics at play. If you, or anyone you know, owes more on a property than it is currently worth, and you want to better understand all the options available in this situation, contact me and I’ll be happy to share my knowledge with you.
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