Moratorium, Not a Form of Foreclosure Help According to Realtors in CA- By: John Cutts
Some members of the California housing market industry have criticized the moratorium on foreclosure sales announced by Bank of America and other major lenders, asserting that the move is not providing any foreclosure help to homeowners and the residential property industry in general.
According to housing market analysts and a number of realtors, the temporary hold on San Jose foreclosure homes for sale, CA and sale of distressed properties in other areas of the state has created uncertainty about the industry's future. A number of housing industry observers have also stated that the temporary sales freeze is discouraging home buyers in all areas of the state.
The controversy comes at a bad time, with foreclosures in California recording the highest number in the whole U.S. for September 2010. Data for the month showed the state having a total of 17,765 bank repossessed properties, more than any other state in the U.S.
Real estate foreclosure houses and non-foreclosure home sales also dropped in California for the first three business weeks of September, with total single family dwellings sold for the month being fewer by around 4,000 than September 2009's total of 30,833, according to data presented by DataQuick.
Some analysts have stated that the moratorium has made things worse for homeowners and consumers who are seeking foreclosure help amid problems of job loss, economic downturn and now, a possible new wave of foreclosure problem. Questions regarding the validity of foreclosure procedures are also pushing buyers away from the market, analysts have reported.
Aside from home buyer reluctance, analysts are also worried about the impact of the controversy on the title insurance aspect of the industry. According to them, some title insurers have announced that they will stop insuring residential properties foreclosed by certain lenders until the processing issue has been sorted out.
Meanwhile, banks have argued that the issue is procedural and even if documents were found to be flawed, it does not mean that the act of foreclosing itself is illegal. Some housing market analysts agree, stating that the moratorium and the ongoing review of documents will unlikely provide foreclosure help and that most homeowners facing troubles will not be able to save their homes regardless of the outcome of the review and the nationwide investigation.
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John Cutts has been educated in the finer points of the foreclosure market over 5 years.