Southern New Hampshire Home Buyer News – Foreclosures Halted Nationwide?

Legality of Foreclosures Questioned

As a potential buyer of a Southern NH home, you may be looking at foreclosures as a way to get a good home at a great price. The Saga of the Housing Bubble continues, however, and it might just have you, the homebuyer, looking at regular housing with a more favorable eye.

In October, numerous mortgage services voluntarily suspended foreclosures nationwide, including Bank of America (which has already lifted the suspension in 23 states), J.P. Morgan Chase, Litton Loan Servicing and GMAC Mortgage/Ally Financial. The suspensions include pending foreclosures as well as foreclosure sales, as the mortgage lenders/servicers investigate flaws in their foreclosure processes. In short, there is concern that some amount of the foreclosure documents were improperly reviewed and improperly handled, which could potentially cause title issues for current owners.  For those of you wanting to buy a foreclosed Southern NH home through one of these companies, it may be a long wait.

A task force including representatives (mostly attorneys general) from all 50 states is investigating the mortgage foreclosure practices of several major lenders and has been working to arrange meetings with the lenders.  Thanks to nationwide, coordinated efforts of State Attorneys General, at least 17 of the states are probing all lenders’ foreclosure processes independently for accuracy with respect to state laws.

Depending on who you ask, this drama could take a very long time to unfold or it could be resolved quickly.  In general, the lenders don’t expect to find many problems because most foreclosures are believed legitimate. However, because each state has it's own foreclosure laws, national lenders must follow many variations of the foreclosure process, which naturally makes it easier for them to make mistakes.  Even if it only lasts for a few weeks, some buyers are left sitting with an offer on the table and no closing.

With the foreclosure processes being reviewed and many of the sales halted, buying a foreclosed Southern New Hampshire home may not be as ideal as you think – at least for a little while. Don’t give up hope on owning your own home, however. Instead, take a few minutes to look over the other homes for sale. Your dream home and great deal may not be a foreclosure after all!

If you’re looking for a beautiful home of your own, I can help. Call me at 603-821-1134 or email me at Dave@DaveHeeter.com for more information.