Mortgage foreclosure suspensions, which occurred over the past weeks, had many concerned about the troubles which could be created for the housing market as some foreclosure sales on homes were halted and either caused trouble for buyers or simply lead to a potential homebuyer walking away from the property.
At the present time, numerous homes are sitting empty, which has a negative effect on home values, but also, with low interest rates on home loans and affordable mortgage prices, many feel that homebuyers stand to gain from deals in certain areas on foreclosed properties. The slow job market has not created an environment where hordes of individuals are able to take advantage of these potential mortgage deals, but concerns over foreclosure suspensions by many of the nation’s top servicers were felt to be a step back in the housing market recovery.
However, despite questions that still remain and homeowner complaints over what they feel to be improper foreclosures, servicers like Bank of America, J.P. Morgan Chase, and GMAC Mortgage/Ally Financial reportedly have either resumed their foreclosure practices or plan to do so in the near future.
While there are still battles being fought by homeowners and financial institutions over mortgage foreclosures, many of the financial institutions which suspended foreclosures for questionable practices stated that the homes which were foreclosed upon were instances where homeowners justly faced eviction. CEOs of these financial institutions did state that improper foreclosure documentation processes were used in certain cases, but there are reports that have indicated many of these servicers are either training new workers to handle foreclosures or changing policies concerning foreclosure documentation.
At the present time, there are those who feel the suspensions will not have an overall detrimental effect to the housing market as homeowners who lost their home are believed, in the majority of cases, to have been those who simply could no longer afford to make their payments, and buyers seeking to purchase a foreclosed home still have opportunities to do so. However, there are those who are still concerned over the fact that such a large number of foreclosures may have been warranted as this points to problems that remain in areas, like employment, which have led to homeowners being unable to meet their mortgage payments as a result of job loss.