In the short time from our last news letter highlighting the Ally Financial foreclosure debacle and the ‘Robo Signers’, much has transpired. Bank of America stepped up and actually placed a hold on foreclosures in all 50 states. Exciting news initially as I hoped to see the other big players follow suit. I mentioned last week on another webinar that I was told by a Bank of America representative that according to their internal information the hold was only effective until November 1st, 2010. Yesterday in the news I read the same statement (via Yahoo news). I am hoping this will change as we need every tool lately to get the sales approved.
Every distressed home owner needed this help not because it was going to save a home they could no longer afford. The hope was for this to increase the likelihood of a short sale being approved because it gave us more time that had recently been take from us on these sales. As a reminder to what we might be resetting to about 4 months ago an alarming trend started with the banks. They almost collectively started eliminating any halts to foreclosures in process. Stating the cost for stopping and re-starting the process was far out weighing the financial benefit of a short sale; that often the offers wer in fact too low. This created a new foot race between getting the short sale approved BEFORE the auction sale date arrived. It is getting more difficult to stop these sales. Reach out to your home owners and advise them of these alarming changes.
23 States on Hold:
Connecticut, Delaware, Florida, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Nebraska, New Jersey, New Mexico, New York, North Dakota, Ohio, Oklahoma, Pennsylvania, South Carolina, South Dakota, Vermont and Wisconsin.