The mortgage mess keeps spreading across the nation like composted manure in a fertilizer spreader. Now officials in 49 states are supporting a probe into the foreclosure proceedings of many of the nation’s largest banks and requesting a foreclosure moratorium. Most of the problem is in relation to bank employees processing thousands of foreclosure documents without reading them, forging signatures, and falsifying social security numbers. Some pundits in Washington don’t agree that we need a foreclosure moratorium. Part of the challenge is foreclosures are handled at the state level, and are different in every state.
Some economists are saying the housing market is recovering…even though it is at a snail’s pace. They were predicting by third quarter 2011, the market would be more in line. Now the same economists are saying a stop in foreclosures could hurt the overall recovery.
This writer tends to believe that a foreclosure moratorium will stabilize prices for the short term, because there will be less inventory. CNBC commentary is reporting at this moment that figuring this mess out could take months and months. Going forward, and once banks start to release this shadow inventory, it will depress prices again. However, if the recession is truly over, jobs should begin to pick up since they are a lagging indicator. If that’s the case, then hopefully, there will be more buyers with jobs who can purchase the increase in inventory. Nevertheless, it looks like it may be another year or two before we get back to some sense of normalcy. Referring back to the initial simile, let’s hope the this “manure” has the same effect that it does over a crop planted field: an increase in results!
Click the following link for more information on How to Buy a Foreclosure Home.
Many banks have proceeded with foreclosures without original signatures and documents. Their actions have caused much debate among law makers and home owners if this process is legal or not. The North Carolina Supreme Court has heard arguments from attorneys representing Wells Fargo and home owner, Linda Dobson of Magnolia, NC. The state Supreme Court ruling should be made within the next few months, and the decision could effect home owners and the foreclosure process across the U.S.
