Wednesday, October 6, 2010

Delay in Foreclosures May Help in Short Term

Reposted from KCM - Keeping Current Matters from Steve Harney
Mixed reports about foreclosures.  Important for Realtors to know…


Just when you thought the real estate industry could not possibly become more surreal, IT HAS! The controlled flow of foreclosures to the market has been the number one concern of every housing analyst. There could be a 'double dip' in house values if they were released too quickly. The recovery could take years if they were released too slowly. Getting it just right was crucial. We posted on this issue last month. Both the private sector and the administration have been working the last eighteen months trying to get the release rate just right.
It seemed as though all the effort was paying off as there were a manageable number of distressed properties coming to the market and selling. Enter the 'robo-signers'.

What is a 'robo-signer'?

Because of the flood of foreclosures needing to be processed, there were employees who signed off on thousands of foreclosures attesting to the accuracy of the documents without having much personal knowledge of what they contained.