Major Lenders Halt Nationwide Foreclosures
GMAC’s mortgage unit, Ally Financial, has followed Bank of America in reviewing its foreclosure proceedings on a nationwide level. Ally continues to halt evictions in only 23 states, but has hired a “specialized team” to review all their foreclosure holdings with special attention given to foreclosure sales. So far, they have found no evidence of improper foreclosures.
This comes at a time of much national debate regarding mandatory moratoriums on foreclosure. The White House has issued statements that it does not support a mandatory moratorium on foreclosures due to potential “unintended consequences.” Most economists and housing experts agree that although this may be a short-term opportunity for distressed homeowners to stay in their homes, a foreclosure freeze would worsen the housing crisis and push recovery further into the future.
However, few are talking about what this means for distressed Knoxville homeowners and the agents who can help them. While these major lenders evaluate their foreclosure processes, delinquent and
seriously delinquent homeowners now have more time to evaluate alternatives to foreclosure. Real estate professionals, particularly CDPE-designated agents, have an opportunity to reach out to these homeowners and educate them about their options.
Not every distressed Knoxville homeowner may qualify for selling their Knoxville home on a short sale . But in this economy, the real estate agent has the opportunity – some might say, the responsibility – to find solutions for homeowners in need, even if it does not result in a sale. This will help to stabilize community values and salvage financial futures for those facing true hardships.
It’s important to note that time may be short in these foreclosure freezes. GMAC was even quoted as stating their halt could extend through the end of the year, but may be as short as a few weeks. Take this opportunity to engage homeowners who may feel they have no other options. It’s an opportunity to make a huge difference.
If you have questions or need help call me at 865-696-9002 or email me [email protected]
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