Typically, I would have provided you an article that came from one of the national or local news sources, however, the last several days the market projections for real estate have changed as often as the wind.
Even last week, much talk was focused on how the stoppage of foreclosures will impact the real estate market and real estate values. The scenarios being put forth were:
- Buyers will remain on the sidelines because they will wait for the glut of foreclosures that build up to be mass marketed, driving down property values.
- Real estate values will rise in the short term because if foreclosures are stopped and previously foreclosed homes are taken off the market, then the supply will dwindle, causing an increase in demand.
Well, all of the news fit to be printed this past week about housing has now become all but irrelevant.
Bank of America announced that they are resuming foreclosure proceedings in 23 states and they expect the other states will be resumed in the near future. BofA has stated that they have found no significant problems with their paperwork and procedures and that they have not found a single homeowner that was improperly foreclosed on and removed from their dwelling. (Personally, I don’t believe that for a second, but nobody is asking my opinion anyway.)
It is now expected that the other major banks will be following suit and that they will take their chances against the army of government and private attorneys that are all watching what they do.
Many private attorneys are now marketing to people who lost their homes stating that they can help them get them back because of the bank errors. (Do you think the attorneys making these ridiculous claims will get in trouble for doing so?)
The bottom line is that if a person was not able to afford their mortgage payment and they were seriously delinquent and then foreclosed upon, it is a pipe dream to believe that anyone will award them back their houses because of a technical filing mistake.
Bottom line – if you didn’t pay your mortgage before, you are not getting your house back.
So where does this leave us? It appears that we are returning to business as usual. (At least what is now considered the “usual” or “normal” market conditions, which consist of values going nowhere, mortgage delinquencies continuing and foreclosures resuming.)
I wanted to get this message out because I have had many calls from potential clients thinking about holding off on purchasing based upon recent events.
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