After almost three months of suspended sales of Fannie Mae foreclosed homes, instruction to resume selling has been given by the government-sponsored mortgage giant in Florida. Selling of foreclosures has been put on hold in September following controversy surrounding lenders' alleged use of questionable documents in processing foreclosed properties.
According to real estate brokers, they received a memo from Fannie Mae instructing them that Fort Myers foreclosure auctions and other home auctions involving the mortgage giant's properties in various parts of the state can now resume. However, house lockouts and evictions remain on hold.
The sales resumption is expected to release thousands of dwellings that have earlier been held back from Florida home foreclosure auctions. This will allow home buyers who already have contracts to complete the purchase process and will get some of the stalled properties out of the Florida market.
Reports reveal that the mortgage firm has also instructed agents and brokers to get in touch with home buyers who canceled transactions following the delay and ask them if they still want to purchase Fannie Mae foreclosed homes. According to realtors, a huge number of buyers decided to cancel negotiations when contract completions were delayed due to the moratorium. The decision of the government-sponsored agency to resume sales was announced following a property acquisition review.
Market reports have claimed that the review included Fannie Mae properties on offer at foreclosure listings auctions and those handled by the so-called foreclosure mills. According to reports, foreclosure cases handled by the firm David J. Stern were also re-examined. The company was supposedly one of the foreclosure mills operating in the state.
Local reports further stated that Fannie Mae has distanced itself from the foreclosure company after the emergence of sworn statements from some of Stern's employees. These statements claimed that illegal practices, such as forging signatures in foreclosure-related documents and covering up questionable files, have been committed in the firm. Currently, David J. Stern is being investigated by the Florida Attorney General's Office.
Meanwhile, some homeowner advocate groups have stated that questions remain unanswered on whether Fannie Mae foreclosed homes were processed properly and legally in the state. They added that most buyers are still reluctant to close purchase agreements for fear of not getting a legitimate property title.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.
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