After a nationwide freeze on foreclosures, Bank of America and GMAC have resumed foreclosing on delinquent homeowners again. Bank of America and many other lending institutions had recently halted foreclosures due to controversy over problematic documents.
According to The New York Times, Bank of America confirmed that it did discover errors in some foreclosure filings. The errors were called “tiny” and they did not find a single case where a homeowner was facing foreclosure in error.
According to Barbara J. Desoer, president of Bank Of America Home Loans, “We did a thorough review of the process, and we found the facts underlying the decision to foreclose have been accurate. We paused while we were doing that, and now we’re moving forward.”
I am not sure what effect that the temporary halt on foreclosures will have on the South Lake Tahoe real estate market, but it should be minimal. Our market is not saturated with foreclosures like many other areas are, only 42 of the 462 single family houses listed on the South Tahoe mls are bank owned foreclosures. I think that the temporary foreclosure freeze was short enough that the impact will be minimal.
Leave a Reply