Monday, January 29, 2018 / by Sean Zanganeh
The Wall Street Journal published this article on the latest Bank of America fiasco happening now.
"The foreclosure market is stalling and confusion is rising in the wake of the recent suspensions of foreclosures by four major mortgage servicers.
On Friday, Bank of America announced it would suspend foreclosure sales in all 50 states. That follows the bank’s earlier suspension of tens of thousands of foreclosures in the states that handle foreclosures through the court system, a move also taken by GMAC Home Mortgage, Inc., a unit of Ally Financial Inc., and J.P. Mortgage Chase & Co.’s home-loan unit.
Meanwhile, several state attorneys general, as well as members of Congress, are calling for an across-the-board foreclosure moratorium to sort out alleged irregularities in foreclosure documents submitted by the banks.
It’s unclear how long the foreclosure market will be stalled–but economists are warning that the delays are bad for housing. The uncertainty in the market will likely scare buyers away from foreclosed homes, which represent a big chunk of current sales.
A report released last month by RealtyTrac, which tracks foreclosures, found that foreclosure sales amounted to an average of 24% of all home sales during the second quarter of this year, which totaled about 248,000 homes. In Nevada, one of several western states that was battered by the housing downturn, foreclosure sales comprised 56% of all sales activity.
Meanwhile, as evidenced by some passionate comments on WSJ.com and elsewhere online, the foreclosure mess taps into some pretty deep-seated anger against banks and mortgage servicing companies–anger that’s been building since the housing market imploded years ago. At the beginning of the crisis, people “had this deer-in-the-headlights kind of look,” Matthew Murray, an agent with the Pat Dahne Realty Group in Florida tells Developments. “That whole look is gone now. It’s been replaced with this Ted-Bundy-crazed-look of anger. They’re not afraid anymore.”"
To view Emily Peck's full article on the wall street journal click here