Bank of America announced they will halt foreclosure sales in all 50 states with all the questions surrounding the legality of the paperwork used in the foreclosure procedure. Several other banks have are also following a similar path.
The recent ruling by a Florida court that IndyMac did not have the right to foreclose upon its former cliernt given that the paperwork signed by a so-called "robo-signer" who routinely signs 6000 documents a week, and therefore could not possibly do a thorough review of the case as required by law, has made many banks hold off on their own pending foreclosure proceedings.
This will clearly mean more delays in determinining the fate of homeowners who are not up do date with mortgage payments and the impact on the real estate market when these homes eventually show up as bank owned properties. Does this mean banks might speed up their response to short sales?
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