Recent news on foreclosure suspensions have many wondering how changes will be implemented by top mortgage industry leaders and document review processes for foreclosures. Numerous homeowners who have had difficulty making mortgage payments over the past months have lost their homes to foreclosure, despite home loan modification assistance being made available.
Numerous foreclosures have taken place across the country and, until recently, it was unknown that some of these foreclosure documents were processed improperly. Homeowners, obviously, are angry with mortgage servicers who are accused of signing foreclosure documents without proper review or offering homeowners alternative assistance plans to save their home.
While there are home loan modifications offered from governmental and private servicer programs, defaulting has still been a problem for numerous homeowners with a variety of lenders. Top mortgage services like Bank of America, J.P. Morgan Chase, and GMAC Mortgage/Ally Financial have suspended foreclosures due to questionable practices in their processes.
Yet, arguments on how this will effect the housing market vary, as there are concerns that this could slow economic recovery, but there are also hopes that mortgage servicers may change foreclosure practices in order to help more homeowners avoid the loss of their home.
While there are factors that prevent homeowners from making their mortgage payments, even if mortgage modification assistance or other forms of aid are offered, it’s hoped that these foreclosure reviews will bring to light changes which could be made to help homeowners stay in their home. The arguments that some foreclosures which were improperly processed may have been avoided had homeowners been offered some form of mortgage assistance plan.
Economic factors and employment difficulties do still remain a problem for many, but numerous homeowners feel that the high amounts of foreclosures could be prevented if proper processes are followed by these major mortgage servicers. Yet, there are those who feel that the vast majority of foreclosures that are in question and being reviewed will not be overturned due to the fact that homeowners had stopped paying on their mortgage and defaulted.
Also, these foreclosure suspensions have many concerned, not necessarily over how homeowners may have been unjustly booted from their home, but on concerns related to future home sales. Some sales on these foreclosed homes have been halted and, even canceled, which analysts say could hurt the housing recovery. Understandably, homes that could possibly be sold but are now sitting empty due to these suspensions could cause loss of revenue from home sales and devaluation on properties.
While the suspensions are still new and, there are those who believe a quick resolution will not cause any detrimental effects to the housing market, mortgage servicers are hoped to bring about a conclusion to these foreclosure reviews and foreclosure documentation processing difficulties which will leave the housing market in a better position for not only homeowners, but investors as well.