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Foreclosures to speed up with vetoes bill of Obama

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By : Rudson Tren    99 or more times read
White House reported that the President Barack Obama will not be signing on the bill that could have possibly made foreclosure clearance easier for the banks. The state and the Federal courts would have been required to recognize the notarized documents from other states if Obama signed this bill. The legislation was approved using the voice votes by both the congressional chambers. Voice votes are used only for bills which are noncontroversial. The bill was passed by the House in the month of April whereas the Senate took it up to September 27th to pass the bill.

It was warned by attorneys and housing advocates that challenging the foreclosure record quality would have become more difficult because of the bill. The attorneys and the advocates were concerned because of a growing number of reports are coming on homes being improperly foreclosed.

The US banks faced an increasing pressure for halting the foreclosure process, because numerous allegations came in about the failure of the loan services in verifying the legal documents. Hundreds of thousands of such cases were flashed which stopped the president from signing the vetoes bill. A request for investigating the foreclosure processes of the banks has been put forward to the Federal Reserve, Justice Department and the Comptroller of the Currency by the lawmakers. In Texas, the foreclosure process by 30 loan services was halted by the Texas Attorney General.

Three lenders namely Ally Financial, JPMorgan Chase and Bank of America froze foreclosures in 23 states of US. Those 23 states require foreclosures to be approved by courts. In the remaining 27 states, the foreclosures continue (latest news is that Bank of America halted foreclosures in the remaining 27 states as well) where judicial review is not required for foreclosures.

The vetoes bill was framed to force the courts to clear congestion by recognizing the documents notarized by other states. The bill would have forced the courts to clear the documents even if they had electronic signatures.

It is because of this foreclosure problem that the economy is still suffering and struggling as the foreclosures have caused serious problems for the housing industry. However, the prospective homebuyers will be benefited, as the foreclosed properties are sold at low prices. There are two benefits which can be enjoyed by those who invest in foreclosed properties now:

  • They will enjoy discounted prices as the banks are attempting to empty their huge inventories asap.

  • When the market booms, the properties will gain market value and will add equity for the homeowners.

For more information of foreclosure listings, visit, your source of fixer upper homes for sale.

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