Breaking News in San Diego Real Estate
As of Saturday, October 9th, 2010, all foreclosure activity by several major banks, including Bank of America, JP Morgan Chase, and mortgage servicer, Litton Loan servicing has halted. In the light of this event, banks will be forced to review paperwork for hundreds of thousands of mortgages of foreclosed homes in San Diego Real Estate. In addition, banks will have to deal with class action lawsuits filed against them by class action lawyers and state attorneys.
The scandal which will inevitably put a hold at a national level on all foreclosure activity is filled with accusations of forged documents, phantom title, robo-signers, and mortgages sliced and diced in every which way that the final owner is unbeknown.
The accusations of document fraud will lead to some foreclosures being overturned in the San Diego real estate market, others conceived fraudulent, although some will still be perfectly legal. If in the scrutiny of the chain of foreclosure proceedings anything can be legally challenged, homeowners who were incorrectly foreclosed may see the return of their house via a complicated game of lawsuits. Current homeowners, whose home will be taken away as a result, will then have to sue the bank from whom they purchased to get their money refunded. Things may get sticky if the bank they purchased from goes broke.
In the short term, the foreclosure freeze in San Diego Real Estate means homeowners in distressed properties will be able to live in their homes for longer rent-free. Additionally, buyers who are house hunting may benefit from the standstill of REO’s, bank-owned properties. As this may mean faster transaction times for short-sales that can last up to six months to negotiate and complete a purchase agreement. Short sales in San Diego Real Estate compose a large part of the market, with the foreclosure moratorium, worried banks, are more likely to accept short sales because they cannot be accused of fraudulent behavior if the owner of the house sells his/her home away; whereas if the bank forecloses on the bank they run a chance of a lawsuit if there is anything wrong in the process. Additionally, if the foreclosure freeze lasts long enough, the decreased San Diego Real Estate inventory could raise the prices of homes so that seller’s have greater control of the price.
In the long term, this foreclosure scandal could delay the recovery of San Diego Real Estate, as well as Real Estate across the country.
Paul Easton is writer who is writing on San Diego real estate and giving us idea of most expensive place in San Diego. To know more – http://bay-realty.com/
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