Big Banks Stop Foreclosure Sales
Banks Delay Foreclosures Until Further Notice
Many of the bigger banks are going to stop foreclosure proceedings in all 50 states.
This is in a response to questionable procedures of loss mitigation departments as well as the questionable authority of mortgage securities and proof of ownership. More specifically the ultimate fate of MERS which is the Mortgage Electronic Registry System that was created and put into use in 1997 to allow for low-cost high-efficiency mortgage security trading.
This massive delay of foreclosures is great news for homeowners. Just imagine the leverage this will give homeowners in loss mitigation negotiations with the lender.
What better incentive to work with homeowners then no other option. Though lenders could insist on waiting it out, there would be no cash flow and extra cost. Lenders would no doubt take a deeper look into a mortgage workout solution such as a loan modification for homeowners who were previously overlooked.
Even if lenders don’t work with homeowners the homeowner will still be able to stay in the home rent free for who knows how long.
This thing could take years. Homeowners would be able to save plenty of money that would allow them to make home affordable somewhere else.
This could go one of two ways.
- Homeowners catch a break and are able to buy some time to regroup.
- Banks catch some real heat and the whole MERS system is found to have no real authority. This would spell dooms day for all of us.