Bank of America Halts Foreclosures Nationwide

The nation’s largest mortgage lender, Bank of America announced Friday that it is expanding its foreclosure moratorium from 23 states, as announced by the bank last week, to include all 50 states.

The company explained in a statement, “Bank of America has extended our review of foreclosure documents to all fifty states. We will stop foreclosure sales until our assessment has been satisfactorily completed.”

The company added, “Our ongoing assessment shows the basis for foreclosure decisions is accurate. We continue to serve the interests of our customers, investors, and communities. Providing solutions for distressed homeowners remains our primary focus.”

BofA was the third major lender to call for a halt on foreclosures in certain states when evidence surfaced that its internal staff may not have followed the letter of the law in reviewing and processing case paperwork.

Such actions were spelled out in black and white when the Associated Press uncovered court documents with testimony from one of BofA’s top executives from a bankruptcy hearing in Massachusetts in February. The

exec admitted that she signed off on 7,000 to 8,000 foreclosure documents a month without even reading them or verifying their legitimacy.

Incidences of so-called “robo-signers” that have been blindly rubber-stamping approvals of foreclosure actions because of the sheer volume of cases landing on their desks has led at least two other big lenders to suspend foreclosures – and some in the industry warn that the problem could be more widespread than anyone wants to admit.

On September 20th, GMAC Mortgage was the first to halt foreclosures in 23 judicial states due to what it called an “internal procedural error.” JPMorgan Chase followed suit on September 30th. Its moratorium, too, is limited to 23 states…so far.

Consumer advocacy groups, state attorneys general, and federal lawmakers are all calling for a nationwide foreclosure freeze until the banks can clear up the paperwork issues in question.

Senate Majority Leader Harry Reid (D-Nevada) said he welcomed the decision announced by Bank of America to expand its foreclosure moratorium.

“I thank Bank of America for doing the right thing by suspending actions on foreclosures while this investigation runs its course,” Sen. Reid said in a statement. “It is only fair … to suspend foreclosures until a thorough review of foreclosure processes is completed and homeowners can be assured that their documents are being analyzed properly. I urge other major mortgage servicers to consider expanding the area where they have halted foreclosures to all 50 states as well.”

Members of Congress from both parties are petitioning for a federal investigation of foreclosure practices at BofA, GMAC, and JPMorgan.

See the original post at www.dsnews.com.

Tips for Buying Foreclosures

For better or for worse, there are a lot of foreclosures hitting the housing market right now.

In fact, I purchased a foreclosure not too long ago. It was in a neighborhood that my husband and I weren’t sure we’d be able to buy into, but low and behold we were able to with a foreclosure. The connotation that most seem to get with foreclosed properties is not something we encountered. But that’s not always the case.

While it may seem like an ideal situation, purchasing a home for less than it’s worth; you need to make sure you take the proper precautions before taking that leap. Here are a few tips:

1. Choose realtor wisely. The realtor you choose to represent you is a personal choice, but make sure you think about your decision from all aspects. Not only your comfort level with the individual but also his/her knowledge in the area, experience in industry, successful track record and of course, familiarity of the foreclosure market. Find a Real Estate Agent
2. Budget carefully! A foreclosure can be a great deal, but it can also be a huge expense. Know ahead of time that if you fall in love with a foreclosure that you’ll be able to invest the finances necessary after the home inspection.
3. Get home inspected. My realtor, and any good realtor would, advised us to get a home inspection of the property. It wasn’t a deal breaker should we find out anything needed to be replaced but it was good to know what was needed in the near future (in our case a new HVAC unit and hot water heater).
4. Check surrounding area. If you’re not familiar with the neighborhood, be sure to research the area. Check out local parks or community gathering places as well as school districts (for children and resale value). While in the neighborhood, glance at neighboring houses to make sure the vicinity has been kept up. This would include landscaping of your property and others, as well as conditions of the houses.
5. Time on market-how long has the house been a foreclosure? Was it properly taken care of (i.e. winterized)? You don’t want turn on the utilities until you know the condition of the pipes. The pipes could have cracked during a cold spell, water could start leaking into the walls, and mold could take hold when you turn the water back on. In addition to plumbing issues, time on the market also affects other things such as bugs and rodents getting into the home.

When shopping for a house, do your homework, especially in the case of purchasing a foreclosure. My recommendation would be to purchase a home warranty from companies like AHS, to help you with any surprises along the way. On top of the home meeting your aesthetic standards, it also needs to be a financially sound decision.

See the original post at www.homes.com.

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Buffett's Real Estate Housing Market Prediction - A Recovery In 2011

One of the wealthiest and most influential men in US history, Warren Buffett, was recently noted for saying, “Within a year or so, residential housing problems should largely be behind us. Prices will remain far below ‘bubble’ levels, of course, but for every seller or lender hurt by this there will be a buyer who benefits.” This was announced in his annual letter to shareholders of Berkshire Hathaway Inc.

As everyone knows, the accelerated decline in the U.S. housing market over the past two years has led to record foreclosures and a surplus of residential real estate. According to Mr. Buffett, he thinks that it will take another year (i.e. 2011) before housing demand catches up with supply. He also says that slowing the production of new homes is one of the fastest ways to bring supply and demand into equilibrium.

For additional information to ideas like the one above, simply enter your name and email address below for timely real estate investing tips, information and cutting-edge marketing strategies to help you become a better investor. You'll receive your FREE real estate investing newsletter. Learn two dozen investor mistakes to avoid. Most importantly, we'll notify you about the up and coming Knoxville investment club meeting.