If you purchased a foreclosed home in the past three years, you may have concern. The best recommendation is to contact the lawyer or title company that did your initial closing and ask if there could be any problems. If you are in the middle of purchasing a foreclosed home by one of the lenders that put a hold on it, you are going to have to sit back and wait. If you are thinking of buying a home that is in foreclosure, be sure to find out who the lender is. If you do put an offer on a home, be sure to get title insurance.
What happened? Many of the lenders had so many foreclosures that they just started pushing them through without following required procedures for documenting and signing the paperwork. They took shortcuts and those shortcuts are causing delays now. Another problem that happened was the large number of banks that bought other banks that were in trouble.
According to Bob Gray, president of the Punta Gorda-Port Charlotte-North Port Association of Realtors, a computerized listing of houses for sale in our area shows that, of the 2,600 houses on the market, only about 240 are bank owned. Many of the bank owned homes were pulled off the market and who knows when they will be put back on.
Will other lenders follow in the footsteps of Bank of America and Chase who have frozen foreclosures and cancelled the sale of properties to re-evaluate? Only time will tell. When purchasing a home you will need to do your research and ask questions.
Tammy Hayes, Realtor, Sandals Realty, Punta Gorda, FL email@example.com