50 States put moratorium on Foreclosures. Now what?

First off, no states have put moratoriums on foreclosures. A few lenders have placed their own holds on their own foreclosures. A couple are in all 50 states.
Most foreclosures in most states continue unabated.
So there is no shortage of foreclosures. The pipelines are still pretty full and these lenders are not going to halt them for long.
My guess is you won't even notice it. There are plenty of fish in the sea!

As I understand it is 4 lenders (GMAC, JPMorgan, and 2 others), in 23 states, and BofA in all 50 states, and it is only temporary until they take a look at their lender foreclosure practices, and it is voluntary. Best thing to do right now is if you are in one of these 23 states, avoid foreclosures held by the banks stopping the foreclosures and focus your energy on others for now and BofA forclosures altogether. Also, it is expected to be a month or two only, not a long standing moratorium.

I'm no Dean , but those are MY thoughts.

Thank you for your advice & wisdom. I like you sayins you quoted. Very nice, thank you.

Bill O Rafety said don't worry it is a political move and 1% will be effected. I trust him he seems to be up on things. I may of slaughtered his name but he tries to give advice each day.

Dean teaches us to be creative and positive; this is a good example of when we need to apply his techniques (and stop listening to the news!)
Well said above Tammy-as with everything, this will pass with time too...
Valerie

I am no Dean (and you did just fine with my name) but whether my town has 2000 foreclosures or 1900, I do not think anyone but the bean counters will even notice - maybe fewer homes in the short time (holdiay season when no one is buying anyway) but if that is the case, there will be a few more in the spring when buying heats up for most the country.

When a guy is 24 months behind on his mortgage and it would cost $72,000 to catch it up, a 3 month hold on his foreclosure does not change a thing unless he can find 72K in that 3 months to catch up his loan. So instead of taking his home in foreclosure in December they take it in March - sad for the homeowner but what is the real change in the market?

I hope lots of folks lay off the market for the nest 3 months so I can capitalize on the panic. This is a opportunity for us all.

there are also lots of other properties besides foreclosures to work with as well.

The ones out there that live and die by watching the news will not be trying to buy houses right now. It is a good time for us to buy now while every one else is waiting on the news to say it is OK to buy again.

If it is a good deal and you have done your home work buy it.

Steve

I've had to turn this around -- not just stop negativity, but consciously create positives. Looks like it takes real energy to purposefully seek the positive. And what a relief! I like this assignment! Thanks, Dean!

"After two illegal break-ins and squattings in a two-week period last November, a court order was obtained and sheriffs secured the property once again," Kishner said. "Police assistance was needed today once again because of trespassing and criminal damage to the property."
http://www.msnbc.msn.com/id/39660038/ns/local_news-orange_county_ca/3965...

ORDER
Plaintiff Mortgage Electronic Registration Systems, Inc.’s foreclosure action is
DISMISSED for lack of standing. Accordingly, the Court’s Order, issued August 27,
2009, granting plaintiff’s Motion for Default Judgment against the defendants Frank and
Ellen Johnston is VACATED. The dismissal of the foreclosure action is without
prejudice as to allow the proper plaintiff to come forward.
Furthermore, because this is a case of first impression under Vermont law and
because it involves important issues concerning mortgage law and real estate title law, the
Court will certify the issue of standing to the Vermont Supreme Court pursuant to
V.R.C.P. 80.1(m).
Dated at Rutland, Vermont this _____ day of ________________, 2009.
____________________
Hon. William Cohen
Superior Court Judge
http://www.msfraud.org/LAW/Lounge/MERS-v.-Johnston-October-2009-Vermont-...

I appreciate the positive attitude and not watching the news, but this is what is going on in the real world regarding the business you are pursuing. It's a mess. If a loan was registered with MERS, the title to the property is in question. What happens when title companies start to include clauses denying coverage for controversial loans? If it's a good deal and you have done your home work, by all means buy it. But your home work better include being up on issues in your business. If you're not up on the issues, you may be going to an expensive seminar, and not by choice. Now that you have lawyers chasing foreclosures rather than ambulances, it's a different game.

Distractions from your goals can include many things and the accumulation and time spent on them can be costly.

Keep that to a minimum.

Decide what is important to you.

Keep your ISRC as empty as possible by not focusing on anything that distracts you from your goals.

If your long term goal is to become more prosperous;
you will find a way to remove and avoid as many distractions as you can.

If your short term goals are to learn more about REI;
then do that with the DG family and the knowledge that you are gaining.

Information that pertains to your goals does not fill your ISRC and is acceptable to persue and acknowledge. (Even news about forclosure changes.) That information can help you to be more creative and realize that the possibility of putting deals together is still very good.

The number of forclosures is in excess of 800,000 so far in the first 9 months of 2010. That is a lot of possibilities. Even with a freeze until the end of this year, that is lot of houses to create killer deals. When the freeze comes off, it will make for a larger number of houses added to the mix. Keep on keeping on.

Last week, there was a front page story about this situation and here is basically what was said in a nutshell... 4 banks have halted pending foreclosure activity that included previously filed actions and the banks would be working with those in foreclosure to right the situation.

They would be foregiving in some situations the past due amounts and getting people back on track with payments.

The one's to suffer the most are going to be those realtors who make their living selling bank owned properties. With the banks halting their actions, it would hurt realtors and in essence affect the traditional home sales market which in South Florida is in shambles anyway.

I have yet to see if this hurts me and it may but there are plenty of deals to go around inspite of this situation.

I am looking for the article online and if I can find it, I will post it here.

Palm Beach Post

October 7, 2010
E-mail Print Share Text Size sfl-foreclosure-home-sales-10072010
Sales of bank-owned homes are being called off statewide, leaving buyers with uncertain contracts to purchase properties and, in some cases, scrambling to find places to live.

At the same time, a freeze on foreclosure evictions has halted efforts to revive derelict homes, forcing continued blight on some South Florida neighborhoods.

The move by three of the nation's largest lenders to pull back foreclosure operations in light of flawed court documents is causing an unexpected chain reaction of real estate tumult.

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People who had remained unscathed by the market crash are now caught in the disarray, while those struggling to get out of the mire are pulled back in with commissions lost on canceled sales or more delays in cleaning up vacant homes.

Norman Lachance is living with a friend after he was told 90 minutes before he was to get the keys for a bank-owned home last week that Fannie Mae was canceling the closing.

The JPMorgan Chase-managed property near Fort Lauderdale is now on real estate's equivalent of a do-not-call list.

"I gave up my apartment because I was supposed to be in my home Oct. 1," said Lachance, whose belongings are in storage. "I bought insurance, paid for an inspection, had the electricity turned on."

Lachance said his $75,000 cash payment already had been wired when the closing was canceled. He said he was told that if he asks for the money back, he will lose his hold on the home.

"My lawyer asked how long this situation would take. There was no answer to that," Lachance said.

Fannie Mae spokeswoman Amy Bonitatibus said Wednesday that she couldn't speak specifically to Lachance's case, but in general sales are halted on homes where there may be issues with foreclosure documents.

"Transactions on such properties are on hold until the servicer can verify that the problem has been rectified," she said.

Fannie Mae is offering buyers of affected homes the opportunity to cancel the contract and get a full refund on deposits or extend the contract, in which case Fannie Mae will hold the earnest money in escrow.

In the past two weeks, Chase, Ally Financial Inc. and Bank of America suspended parts of their foreclosure machines after acknowledging that employees may have failed to personally verify tens of thousands of foreclosure affidavits.

Politicians nationwide are calling for investigations and for all lenders to freeze foreclosures, including sales of bank-owned homes, which make up a growing portion of real estate transactions.

In the second quarter of this year, bank-owned homes represented 14 percent of total sales in Florida, according to analysts at RealtyTrac. In Palm Beach County, they made up 7 percent.

Fewer than 1 percent of Florida home sales in 2005 were of foreclosed properties.

Last week, U.S. Rep. Alan Grayson, D- Orlando, asked the Florida Supreme Court to halt state foreclosures. He was told that the court has no such power.

On Monday, U.S. Rep Ted Deutch, D-Boca Raton, called for a hearing in the House Judiciary Committee on the use of flawed documents to take people's homes.

"The foreclosure crisis is still very real, and too many families are learning what it means for the American dream of home­ownership to become a nightmare," Deutch said.

Tim Polovina, owner/broker of North Palm Beach Realty, wishes today's market were just a bad dream. While much of the recent uproar has focused on illegal foreclosures and keeping people in their homes, he sees another side: what happens after they're gone.

Polovina represents the banks in selling repossessed homes. Much of his business is now on hold and he has seen several closings canceled.

"There are going to be a lot of disgruntled people over this," said Polovina, pointing out that not just buyers are upset. "Some of these Realtors may have been counting on the closing to pay their own mortgage."

According to Polovina, Fannie Mae is asking buyers to sign extensions that expire Dec. 30 if they want to hold on to the house.

"We'll definitely lose buyers," he said.

Current homeowners also may suffer.

On Wednesday, a scheduled sheriff's eviction of a Tequesta home was canceled because of the freeze. The house, with broken windows, overgrown shrubbery and a massive unkempt banyan tree, is full of furniture and debris, although neighbors don't believe anyone is living there. Rats infest the house, they have told the property manager.

Carmen Indrei lives across the street in a neatly kept home. She said her husband sometimes cleans up the yard of the dilapidated house.

"It would be better to have someone living there," she said.

Freddy and Fannie will now be renting homes, actually 1 year leases. That way they don't have to sell them cheap. I also found out that when a bank sells a foreclosure the government reimburses them to what was really owed. "HMMMM, Very Interesting, But Stupid.!

for people taking Dean's challenge... You can't help but here some stuff I just don't let it bother me! There will be plenty of deals for a very long time...it's finding the buyers! That is the missing link.

I fully concur with this thought. Dean's challange happened at the right time. Don't let the noise keep you from making money. Only you can make that decision.

When I heard about this I kinda took it the other way. Like Bill said most people still wont be able to recover their homes, so really it just gives them more time to sell it to me!!! (that didn't sound right) More time for me to help them avoid completing the foreclosure process! (That's better)

I am curious about how that reimbursement works that Charisse spoke of. If that is a new stimulous deal and if it only applies to govt. secured mortgages (ie: FHA, VA, Fannie Mae, etc.). The reason I care is because that can be excellent news to us since it could mean a far more cooperative seller willing to accept lower offers on REO's if they are getting the balance from the feds or state.

Also I would like to point out that I have lived by Dean's advice/challenge since 2001 regarding avoiding the news. While I agree it's great advice I do believe that he would agree with me that we should be paying attention to news effecting our business as all businesses do. In fact he does teach that in "YTYREProfits". So while I don't think we should ignore the news pertaining to REI I still agree with you guys that if anything this is an even better time to buy because of it rather than in spite of it. Ditto on what Bill and others said perhaps we can benefit from lack of competition while others wait this out. So "Drive on!" as we used to say in the Army.

Thanks Charisse for the heads up.

Steve

This is only my opinion, but I think banks are trying to move away from foreclosures anyways. There are too many of them and they are not moving quick enough for the banks, they have been holding back anyhow until the inventory clears. I think they will be moving more towards short sales and save on the cost of the foreclosure, plus they do not end up with a vacant home, and have to maintain it. It is probably cheaper for them in the long run to keep the non-paying home-owner in the property.

I just enjoyed this whole blog. Great information sharing. Thanks.

Sandra

I don't do Foreclosures for now only FSBO's so I am not worried about them besides people listed to much what everybody says about this an that and most are just talk best thing to do is LET IT RIDE!!

I agreed. This mess is making the banks more and more motivated to resolve the issuse and take as much money as they can in order to clear out their books. Seems like short sales and leases options are both good tools. Seems to me that lease option would make a good insureance in case of a problem with the title due to mistakes like this. It would allow us to either walk away or to change the deal.

Carl

Most of the pertinent info has been said in the previous posts, but as of last night I heard that BofA had autited a certain number of their suspect files, and there wasn't one single instance of impropriety in any of the files. I agree that this is a political stunt, it will be short lived, and will have no huge effect on the market. Remember, there's still hundreds of other lenders and banks, credit unions, and private foreclosures that have not been affected. I would proceed as if nothing had happened.

I enjoyed reading all your comments very informative of what is going on now. Thanks MIRANJ

Very interesting and everyone should keep looking for a great deal. I am still working on my 1st deal and looking at properties everyday. The deals are still out there and you might have to be more creative. Don't give up just keep moving forward.

I don't think the government is paying banks for money lost in REO sales. I know someone who works for a major lender and she said they typically go after the defaulted borrower for the difference. If this can't be done, banks will probably just write off the loss to get tax breaks. It would be nice if the government made a contribution so that banks would be more likely to accept low offers from investors, but I don't think this is the case.

yall better stay focus on ur goals and not hear say,hear say,its just wht it mean if u read deans book PROFIT FROM REAL ESTATE NOW alot of u wouldn't have any dout.some of u know the different stragies and dean also state in his book u have to know when to use them,if foreclosures don't work for u try FSBO or FRBO or BIRDDOG (DEAN) HAVE THIS WEBSITE here for u to search for answers and alot of u want to going straight to the finish line when all u have to do is read (DEAN)has mini ways for u to try,its to many houses to go arround for it to be a shortage,always somebody want to sell,always somebody want to buy u have to find a way to attract the type of people u r lookin for,if it's using the thriffty nickel papers or local radio station u have to do wht works 4 u in whtever st u r n and i have made a deal yet but i see the light at the end of the tunnel yall keep u heads and chest out,but i know 4 a fact when i do alot of u will be happy hope to do busniess with all of u (DEAN)said think out side the box and alot of u not doing it TAKE ACTION instead of look at the news.since i've gottin DEAN'S BOOK the only thing i look at is the weather that's it (DEAN)said if u have to read the book over and over til u get it,do so cause alot of u miss out by skipping pages if u did that u miss something i'll let some of this cook in ur head hope it make u go get that book and reread cover to cover I'M GONE!!!

All the rules have changed in the last couple of months. Lending banks are now being held accountable for the trap they set, borrowing money they didn't themselves have, while using loose and illegal practices in the process. The massive lawsuit against Wells Fargo / Wachovia, Indymac / OneWest bank, Citibank, Bank of America, JP Morgan Chase, GMAC..............can actually, not only put a stop to your foreclosure, but also pause your house payments with no loss to you............
https://sites.google.com/site/sueyourlendernow/