Market Conditions in Seattle>Question Details

Derek Eyring, Real Estate Pro in Lake Tapps, WA

What do you think the unintended consequences will be from the forclosure stoppage of B of A, etc. due to questions of improper proceedures, etc

Asked by Derek Eyring, Lake Tapps, WA Sun Oct 3, 2010

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I can see the number of foreclosures in Washington spiking up as they have moratoriums in other states and need something for the employees to do.

Alternatively, you could see the number of foreclosures drop if the employees are re-checking documents from other states. I would think that extra work we be performed at the law firm level though, so I think this second situation is less likely than the first.
1 vote Thank Flag Link Mon Oct 4, 2010
IMO, there will be no effect in Washington state. Accroding to the article I have read, it only affects states with judicial foreclosures.

Nationally, minimal effect and only for about 30 days until they set their proecures up again to comply with Freddie Mac procedures.
1 vote Thank Flag Link Sun Oct 3, 2010
House prices might go higher? Less inven.
1 vote Thank Flag Link Sun Oct 3, 2010
Nothing about this was unintended. The Banks knew what they were doing, they just didn't think they would get caught. As for consquences, probably a slap on the hand being told they should not be doing this and shouldn't do it again. It may help in one respect, buyers will have to buy conventional homes being sold by sellers, not foreclosures. That could be a good consequence in my opinion.
0 votes Thank Flag Link Sat Oct 9, 2010
There will not be any unintended consequences, only intended ones, and we have no idea what those will be until after they arrive. They just keep messing things up worse & playing with our money.
0 votes Thank Flag Link Sun Oct 3, 2010
I think B of A is well aware of everything they are doing, and there won't be any unintended consequences. This is a strategic plan, and one like this wasn't thought up overnight. They know what they are doing. I'm not saying they are right, I'm just saying they aren't dumb.
0 votes Thank Flag Link Sun Oct 3, 2010
Look for some Class Action lawsuits being filed by some hungry law firms. Also look for more Forensic Loan Audits being done by attorneys representing people doing short sales to uncover federal law violations in the original loan applications. There are plenty of those kind of loans out there.
0 votes Thank Flag Link Sun Oct 3, 2010
Probably none, and that is a real shame! The banks have made a mess of an already bad situation and they seem to be doing absolutely nothing to try to make things better. Now we discovery they can't even prove ownership of the mortgage paper. But, no matter what they do the government bails them out. Everyone seems to be afraid to hold their feet to the fire and demand accountability, proper procedures, compliance with the law and just plain good customer service. If everyone in this country would stop asking "how high" everyime some bank said "Jump" we would all be better off!
0 votes Thank Flag Link Sun Oct 3, 2010
My opinion, it will continue the 'foreclosure drag' on the economy and real estate market. Instead of clearing out the inventory quickly, it will continue a foreclosure trickle for years to come. Chase is jumping on the foreclosure stoppage, too. We'll see...
0 votes Thank Flag Link Sun Oct 3, 2010
There will be no consequence. I just hope the obstructionist minded Republicans don't gain any Senate seats. We all know Carl Rove and his cronies care more about personal power than the American people. The last thing this country needs is more Bush era policies.
0 votes Thank Flag Link Sun Oct 3, 2010
At this point, I don't see any "unintended consequences". As we approach the mid-term election, we may see a change in the government enough to spur an improvemnet in Consumer Confidence. This will improve the housing market, nationwide, and get some of the inventory sold instead of repossessed. Also, the foreclosure stoppage might give some homeowners in trouble a chance to rally, and cure or refinance their mortgage problems. We shall see!

Jean Bradford, ABR,GRi,CRS,CRB
Managing Broker Associate
John L. Scott, Inc.
Silverdale, WA
0 votes Thank Flag Link Sun Oct 3, 2010
There may be a skew in the housing numbers that look like a slowing of the decline or an increase in sales. Neither of which will be influential in the market's reality.

Unless there is a ridiculous concentration in a particular area that will take so many homes off the market, the impact of it will not be felt.

Fred Glick
Web Reference: http://fglick.com
0 votes Thank Flag Link Sun Oct 3, 2010
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