Thursday, December 2, 2010

All is Quiet on the Foreclosure Front

As you know, the leading mortgage lenders imposed a national foreclosure moratorium in November 2010. That extension is providing extra time for the banks and mortgage services to review their foreclosure procedures, which hopefully includes the preparation of non-fraudulent documents. Of course that also means the extension is permitting homeowners to remain in their homes for a longer period of time while they try to get back on their financial feet. People have been calling me and asking what they should be doing now. I first tell them that while the moratorium may cause a delay in individual cases, due to title issues or shoddy paperwork, there are no guarantees that they will be one of those fortunate cases. I also tell them to use this time to pursue a loan modification or a short sale. I have a feeling that once the holidays have passed, and after retail sales get their artificial boost because people are using mortgage money to buy gifts, the foreclosures will resume in earnest. Just be prepared.