HOME FORECLOSURES-REPORT #3
This is our 3rd Report on Home Foreclosures. I would like to say it was information confined only to Salt Lake City, but it's not.
The Foreclosure problem is a national concern that seems to be growing and effecting those states in proportion to the number of Foreclosed Homes on the books and the number of Houses pending a notice of default.
Actually to call this a Foreclosure problem may be a misnomer. We all know that the number of home owners unable or unwilling to keep their home mortgage payments current has resulted in an unbelievable number of Foreclosed Homes around the country. That was a.............. "problem".
Bank Owned Homes, HUD Homes and Corporate Foreclosures had created a glut on the market, driving down prices, equity, and stopping any significant New Home Construction...................... That was a "problem".
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This problem has more to do with the moratorium many of the major lenders have put on selling their bank owned homes, and the cessation of all foreclosure proceedings.
As of today almost every lender in every state has temporarily stopped all foreclosure activity of any kind.
The basic questions of why, what where and for how long will this stoppage last are unanswered, and for the time being unanswerable. So until we get some definitive word on where we are heading we will report just snippets of what we have found as we try to get our arms around the severity of the problem and how it will effect our business and how we can best help our clients.
Here are some of the things we have read about the Foreclosure moratorium.
The attorney generals of many states are calling for the investigation of claims of falsified mortgage documents.
This would be considered a procedural error.
Most banks are denying that these errors led to any wrongfully foreclosed homes.
Title to homes could be compromised.
Class action suits have been filed against Mortgage Electronic Registration Systems for creating false documents.
- We can probably expect more of the states to join.
- False documents can create a nightmare for Title Insurance Companies trying to defend their clients (home owners).
- Title Companies will need to go after banks to recover any losses.
- Bogus documents have created millions of unclean titles on Foreclosed Homes.
- One study suggested that as many as three quarters of home foreclosures had errors in title.
- 25% of homes sold in the 2nd quarter were houses or condos under some kind of mortgage duress.
- In the State Of Utah, that would mean about 2,000 Houses and condos, In Salt Lake City metro area that number could be in the area of 900 homes in foreclosure, short sale or a house with pre-foreclosed status. .
- Defects in title may not show up for decades, as the home is resold and another researcher examines title.
In summary, I guess we can say that what was the "Foreclosure problem", is now the " improper foreclosure problem". and that home buyers, home sellers, title insurers, and lenders will be working on this problem for years to come.
If this Home Foreclosures Report #3 doesn't deter you and you would still like to search for some amazing opportunities for buying a house in Salt lake City you can search for Bank Owned, HUD Homes, Home steps, & all other repossessed houses and condos @ Salt Lake Foreclosures.
Or you can call us @ 801-567-0946 and discuss anything about SLC Real Estate or Home Foreclosures-Report # 3.