Washington State Mortgage Update – Foreclosures And You

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Foreclosures, the latest

Here is another piece of advice to Washington state mortgage holders. This particular article involves foreclosures and the latest news.

Lately, very few things have been in the news more than the topic of home foreclosures. it is estimated there have been more than 4 million homes entering foreclosure over the past four years and roughly 300,000 are entering the first stage monthly.

Recently the attention has turned from the sheer volume of foreclosures to the procedural flaws in foreclosing that are threatening lenders’ rights to foreclose because legal “ownership” of the mortgage may not be readily determined or because paperwork related to foreclosing was improperly executed. The net result is that several major lenders have announced a moratorium on their foreclosure process to allow them time to review their documentation and to determine that they can legitimately move forward. This has interruped the normal flow of homes through the foreclosure process. Instead of having a predictable timeline, buyers must sit in limbo with respect to the actual availability of a particular home for purchase. Media focus on these issues has created attention and anxiety on a national scale, the real economic effect will likely be very localized and concentrated. You can forget homes going on the market in communities with lots of foreclosures where lenders own the mortgage and have halted the process, at least for a time. This could have the strange effect of boosting home prices in those areas since the foreclosure freeze is limited the availabe housing inventory. However as a national economic issue, the overall impact will probably not have a measureable or lasting effect on the housing market. That assumes, of course, that lenders move expeditiously to determine their ownership and identify steps necessary to deal with the process and documentation problem, like, resuming the foreclosure process or indentifying loan modifications and workouts. I will continue to monitor this situation very closely, and would encourage you to call or email me so we can discuss what this might mean to you.

Dexter Wellington

About Author
Yes, yes, laugh about the name, but it’s classical! Gaius is a web entrepreneur specializing in marketing and outreach. Working with mortgage and real estate professionals, he has worked to identify some of the best in the industry for potential clients.

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