With the news that there are foreclosure freezes from several banks due to paperwork issues, I applaud those banks that took the initiative to halt the process and evaluate the issues. As a real estate consultant, I am glad to see there are banks caring about issues before they become problems, in the same proactive way I conduct business.
So what does this mean to you and me, the everyday people feeling the effects of bank bailouts and tough economic times?
- There eventually will be a back log of properties that will come on the housing market. This back log may adversely affect real estate prices, again.
- There is a possibility that current properties that are Bank Owned (aka Real Estate Owned, Foreclosed) will be delayed in closing due to paperwork backlog.
- Homes that are Short Sale are NOT affected by this freeze. Short sales are a totally different process and are not combined in the freezing process.
As Jerome Idaszak from Kiplinger.com states, "The only sure cure is time. The question is, how painful will it be to get from here to there." I could not state it any better.