Monday, October 11, 2010

Foreclosures in Crisis

In the past few weeks, information has come to light implying that lenders were improperly handling foreclosure activity. Because of this, Bank of America, JPMorgan Chase & Co., and Ally Financial Inc. froze foreclosure activity in 23 states. Now, Bank of America has announced it will stop foreclosures in all 50 states.

Because of this, the federal government is looking at imposing a nationwide moratorium. U.S. Rep. Edolphus Towns, a New York Democrat, who is chairman of the House Committee on Oversight and Government Reform, said the top 10 mortgage lenders should immediately suspend foreclosure proceedings in all states. "The implications of ignoring the foreclosure problems are far too great to be ignored," he said Friday.

Many real estate agents whose clients are in contract to buy foreclosed property are being notified that the purchase has been put on hold indefinitely. So if you are considering buying a foreclosure, be prepared for long delays.

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