Many of you have seen in the news that several large banks, including JP Morgan and Bank of America, have placed a moratorium on foreclosure proceedings for properties they have lent money on.  These banks and others are taking this action because consumers have called into question whether the banks followed the appropriate protocol when foreclosing on homes.  Some say the banks 'rubber stamped' the foreclosure process and may have made errors when deciding to move forward with a foreclosure.  As a result, some homeowners may have lost their homes when they otherwise could have kept them.  Because these issues could lead to lawsuits against the banks, they have decided to call for a moratorium.


What does this mean for the overall real estate market?

In most cases, the foreclosure moratorium will just delay the inevitable.  The vast, vast majority of these properties will go into foreclosure anyway, whether it's now or 3 months from now. In the short term, sales of non-distressed properties may go up (since there won't be as many foreclosures available, which make up 1/4 or more of the sales in the Charlotte area). Prices may go up as well.  But after these properties are once again available, there will be more homes on the market, which mean prices may dip back down to equilibrium. 

How long will the moratorium last?

No one knows for sure, but there are rumblings that it could last around three months. 

How will this affect those interested in buying foreclosures now?

There may be a delay in the purchase process.  This will be true especially of short sales because the bank has not taken possession of these properties yet.  But, again, the vast majority of these homes will eventually still need to be sold.

To request a Hot List of the best priced foreclosures in Charlotte, click on this link: http://charlottespreferredbrokers.com/content/article.html/2535374/