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The Freeze in house foreclosure Keeps Homebuyers Stranded



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By : Clark Raitz    99 or more times read
Many homebuyers are unexpectedly finding themselves homeless due to the current issue on the house foreclosure process.

There are stories of people who were about to buy foreclosures in Prattville, Alabama when major banks were exposed for improperly reclaiming homes of borrowers. Now most of them temporarily live in hotels.

Being in the midpoint, they cannot attend to all the things that a homeowner should do, like installing the lost water heater, cut the grasses, and prepare their home for winter.

Since the Bank of America stopped the processing of house foreclosure almost two months ago due to the robo-signing scandal, a growing number of prospective buyers of foreclosures in South Carolina are becoming more anxious as to how long they have to wait before they can finalize deals. This is just a sign that the document problem is certainly pulling the market down. Statistics show that the sale of existing houses fell by 2.2%.

Some financial institutions though are claiming that they are full proof against any wrong foreclosures. They find nothing faulty in their system and so they believe it was unnecessary to hold potential buyers like those of foreclosures in Prattville, Alabama.

Such a case was unheard of until the robo-signing issue appeared in the public. This prompted major banks to freeze the foreclosure process until everything becomes clear.

Thousands of documents each day were signed by some of the employees of these mega banks without properly reviewing the contents. Thus, it was named robo-signing.

Government officials are concerned that there may be more issues behind these robo-signings. How many of all the foreclosures, for instance the foreclosures in South Carolina, were properly processed? Were banks entitled to perform the foreclosures? Banks argue that the real issue is just technical and that borrowers were failing to pay. Whatever the real problem is; the truth is the housing market is being hardly hit again.
Original Post: http://www.foreclosuredatabank.com/foreclosures-blog/article/2304/freeze-house-foreclosure-homebuyers-stranded on ForeclosureDatabank.com, your source of foreclosed homes.

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