Avoiding Foreclosure Freeze Worry

 

Helping people through customer service is what we do.   Selling real estate is a planned result. 

 

Part of our customer service is being involved with people who want to avoid foreclosure through loan modifications or short sales.  

Please encourage people to understand foreclosures and stop worry about bad paperwork and freezing such processing.   

Stopping all home foreclosures isn't what our economy needs and is not what those in foreclosure deserve. 

Freezing foreclosures would be an overreaction and not proportional to actual problems reported so far or those supported by facts.

The Obama administration won't go along with nationwide moratorium on foreclosures.  Private institutions like GMAC and Bank of America have started their own foreclosure stoppages, because some processes had bad paperwork and weren't fully documented. 

Most lender foreclosure mistakes seem to be technical (like "robo-signing" of docs) and not about whether owners defaulted, and were not illegal foreclosures.  In the few illegal foreclosures, victims will be taken care of. 

Where there was lost or mishandled foreclosure paperwork, new docs will be filed with corrections and foreclosures completed. 

Most homes affected by any foreclosure freeze will eventually get foreclosure paperwork corrected, cleared and completed.  

Foreclosures now scheduled are mostly valid and should be moved forward.  These are where borrowers were unable to or declined to pay their loans and defaulted. 

These borrowers didn't request reinstatement of their loans, and foreclosures are valid and legal.  Few people now in default on their loans and in foreclosure are "victims".  Many buyers during the credit bad loan underwriting times (for "liar loans" between 2004 and 2007) knew they were taking on mortgages they eventually couldn't afford. 

Let's understand some negative consequences from possible government imposed foreclosure freeze.  

• If foreclosures stopped, homes that could be sold would be kept off the market while foreclosures are processed, which only postpones the inevitable.
• If foreclosures are stopped, lenders will would be deprived of expected income they would use for other loans to businesses and homebuyers.
• Foreclosure delays cause buyers to be nervous, which is not what our economy and markets need.
• Taxpayers would pay for this, because Fannie and Freddie continue to lose money and get more of it from the U.S. government.

Foreclosure freeze has become a political issue, which will lose steam after November 2 election day.  Don't expect government action to freeze foreclosures.

Source: WSJournal.com; OCRegister.com; FoxNews.com

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Harrison K. Long - Business Solutions and Advisory, REALTOR® and broker associate, ColdwellBanker Residential Brokerage - Phone: 949-854-7747  -  CA DRE 01410855 -    www.LiveAtOrangeCounty.com  -  www.OCPropertyNews.com  -  www.Irvine-homevalues.com  -  www.NewportCoastLive.com  -  www.CoastLivinghomes.com  -  www.OCHomeValueGuide.com-  www.LiveAtIrvine.com  -  www.CostaMesaLive.com  -  www.ExploreOCHomes.com  -  www.CoastLivingHomes.com  -  www.LiveAtNewportBeach.com  

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