Recent foreclosure suspensions have caused concern within the housing market, for homeowners, and homebuyers as well. There has been questions as to whether foreclosure proceedings were properly documented or conducted, but there are analysts who feel that the majority of homes in question were not undeserving of a foreclosure.
Yet, there are homeowners who feel that foreclosure proceedings were started on their home or completed unjustly, as accusations that proper reviews were not conducted. Some homeowners claim that had a proper review been conducted on their foreclosure case, it may have been found that a homeowner could have benefited from a foreclosure prevention assistance plans, like home a loan modification.
There also questions as to whether banks who foreclosed on certain homes even owned the property and there have also been homeowners who have stated they had not given up on their home but were in the process of receiving a modification.
Overall, foreclosure suspensions have caused a great deal of trouble for mortgage servicers, questions from homeowners, and for homebuyers who were attempting to purchase foreclosed properties, proceedings have been stalled and are no longer moving forward on the purchase or may have backed out altogether.
There are many who feel that these foreclosure suspensions will not do a great deal of damage to the housing industry if they are not drawn out, but numerous questions have arisen over not only procedural practices of foreclosures, but also, whether homeowners are being offered the opportunity to save their home. FDIC Chairman, Sheila Bair, stated that servicers may have been quick to process these foreclosures in the hopes of recovering losses through the resale of a foreclosed property.
Obviously, this is an issue that many feel needs to be addressed as some homeowners believe banks simply want to get them out of their homes, if they are struggling to make their payments, so that the home can then be sold to a homeowner who can make mortgage payments at the present time without the need of modification.
Foreclosure suspensions have been a very big topic in the housing industry over the past weeks but it’s believed that most homeowners who lost their home did so because of defaulting and, in most cases, homebuyers who may look to purchase a foreclosed property should be able to do so in the coming weeks after the reviews have been completed. Again, the servicers feel that there were no errors in the documentation of foreclosures, rather processing was where the fault occurred.
Yet, it’s hoped that these foreclosure processes which have been used by some of the nation’s top servicers will bring about change in the housing industry and possibly allow homeowners who are facing foreclosure the opportunity to find alternative payment arrangements so they can keep their home.