Earlier this month, Bank of America, the largest mortgage holder in the country, announced it was freezing foreclosure proceedings in 23 states. The company later extended the freeze to all 50 states.
This move follows JP Morgan Chase’s decision to suspend 56,000 open foreclosure cases.
The unprecedented foreclosure freezes come after bank employees and affiliate companies admitted to a process of blindly executing foreclosure documents without first reviewing them.
Tom Kelly a spokesperson for JP Morgan Chase says the company has begun to re-examine affidavits and other documents filed in the pending foreclosures to confirm that the information is accurate and meets the standard of review.
And Bank of America says it plans to “amend all affidavits in foreclosure cases that have not yet gone to judgment.”
Most delinquent homeowners welcome the freeze as it halts pending foreclosures and buys them more time to bring their mortgages current.
But real estate agents and other professionals worry that the freeze will eventually hurt Florida’s already fragile and recovering housing market.
“Bank-owned properties make up about 40 percent of home sales in South Florida, and suspensions by JP Morgan Chase, Bank of America and GMAC could deliver a debilitating blow to that crucial segment of the embattled real estate market,” according to an article from Miami Herald.
Pending home sales will remain in limbo until the banks resolve the issues and end the moratorium on foreclosures.
Have you been affected by the foreclosure freeze? Share your story in the comments section below.
A pre foreclosure is a property that is only steps away from being repossessed by the mortgage lender.
While Florida’s real estate market attempts to recover from the historic crash, a large number of properties remain in the foreclosure process.
Foreclosure Filings are on the Rise
Are you finding it hard to stay away from the foreclosure process? The possibility of losing your home can be a frightening experience for any homeowner.
