As we've all seen REO inventory is not what they used to be. There are less homes on the market because the banks are now doing the due diligence to ensure they foreclose properly. This, in addition to the new relief that will be offered soon to home owners having hardship (forbearance extended from 3 to 12 months & and review of applicants who were foreclosed upon between 2009-2010, etc.) may allow owners to stay in their homes longer.
In my opinion, this will not only affect the foreclosure rate but it can negatively impact the rate at which homeowners will decide to do a short sale. Homeowners may just decide to wait it out as long as they can, thereby creating a trickle effect. Bottom line... real estate agents should start rethink their strategy, the market may remain depressed but we may have less properties to turn around. See below....
Second chance for owners who lost homes
WASHINGTON – July 11, 2011 – More than 2 million homeowners who were foreclosed on or were in the process of a foreclosure during 2009 or 2010 can now ask for a review of their case, banking regulators announced this week. Banking regulators say ex-homeowners who might be eligible will receive a letter from their lender explaining their rights.The move is to help identify homeowners who may have been improperly foreclosed upon, Julie Williams, chief counsel of the Office of the Comptroller of the Currency, said at a congressional hearing.Homeowners who ask for the review will receive a letter explaining their rights.Mortgage servicers will hire independent auditors to conduct reviews of the cases and determine if homeowners should receive financial compensation if the foreclosures were not done properly. They will also look for borrowers who were denied loan modifications when they may have been eligible for one.The reviews are part of the mortgage servicer requirements called for by regulators after an investigation last fall revealed improper foreclosure practices by banks. Banks have until Wednesday to submit plans to the OCC on how they plan to revamp foreclosure practices.
Source: “Foreclosed Home Owners May Seek Case Reviews,” USA Today (July 8, 2011)
Imran MohamedColdwell Banker Ackley Realty
3264 Greenwald WayKissimmee, Fl 34741
Cell: 407-744-1827
Office: 407-846-4040 Ext 626
Fax: 407-846-3407
www.flshortsalepros.com
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