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Bank Owned Foreclosed Homes Procedures Questioned in North Carolina



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By : John Cutts    99 or more times read
Several lenders are being investigated by North Carolina Attorney General Roy Cooper in relation to their processing of bank owned foreclosed homes Cooper has also ordered the lenders to put a hold on foreclosure actions while the investigation is on-going.

The AG review is expected to affect thousands of foreclosed properties in the state, including Fayetteville foreclosed homes, NC. According to local reports, Cooper has asked the mortgage lending companies to prove that their method of processing foreclosures is in line with existing laws.

Cooper has revealed that the review of procedures for North Carolina foreclosed homes for sale started in September when GMAC Mortgage's foreclosure practices were questioned in various states. GMAC, along with several other lenders, have temporarily suspended foreclosure proceedings in 23 states following claims that some of their employees sign foreclosure documents without reviewing them first.

Right after this revelation, government officials and state authorities questioned mortgage companies' policies regarding foreclosure homes for sale. Housing market observers have alleged that a big number of foreclosures in the country were due to faulty documents and that some lenders have violated legal procedures in relation to distressed properties.

Sources from the AG Office have stated that North Carolina is collaborating with other U.S. states with regards to the review of bank owned foreclosed homes processing since majority of mortgage firms operating locally also have units in other U.S. regions. They also revealed that the review can last up to four weeks and can affect tens of thousands of foreclosed properties.

Housing market analysts have stated that the temporary hold on foreclosure processing will provide some reprieve to troubled homeowners, but in the long run, can cause an imbalance in the housing industry which is already suffering from instability caused by huge numbers of foreclosures.

They added that most lenders are eager to unload foreclosed homes and other types of properties off their books and the halt will prevent them from completing such actions. Home buyers who are looking for low-priced bank owned foreclosed homes are also likely to get discouraged by the temporary hold, which could result in massive losses for the market in the long run, analysts further added.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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