Banks Halt Foreclusres -Home Sellers should use to their advantage
Minnesota Home Sellers Can Benefit From the Halt in Foreclosures
For the first time in the massive chaos of the housing crisis the traditional seller (non foreclosure or bank owned) can catch a break. Even though this is merely prolonging more foreclosed homes coming to market, there will be a temporary decrease in foreclosure inventory due to the industry wide freeze on foreclosures. Most of the big banks have been pressured to thoroughly examine their practices for foreclosing on homeowners. The pressure began amidst a discovery that lenders conducting a mass processing of documents via a automated signature process. The concern is that there were signatures fraudulently placed on foreclosure documents affecting either the time frame, or the process of a homeowner loosing their property.
Sellers Will Face Less Competition
The same story has been the central theme for traditional sellers the past couple of years – the buyers are going for the best deals which in many cases will be bank owned properties. Now those bank owned properties will be diminished over the next few months providing a window of opportunity with less fire sale properties. This should be utilized by the smart sellers who have a desire or need to sell but are pessimistic about the fact they will have to compete with bank owned homes. Realtors across Minnesota and the US should be counseling their clients to position their homes for success over the next few months. There are buyers still in the market that need to find a home. They will have less opportunities to purchase the low priced foreclosures and will need to look at traditional inventory more closely
The Banks will Return to Business as usual asap
Most of the banks will launch their investigations quickly and try to move through the process in a timely matter to minimize future losses. The banks will examine their process and will investigate carefully, with the objective to identify and fix the issue so they can continue move through foreclosed homes with an efficient process.
Foreclosures Are Still Plentiful in Minnesota
Many of these homes that will be investigated for procedure have long been vacated by sellers who no longer have the means or desire to stay in the property. Even though the process may have been flawed in 99% of the cases the outcome will not change and the banks will have to deal with the mounting losses.