Larry Barton
REALTOR ® (S), SFR
Kauai Real Estate
Foreclosure Crisis and Bank Freezes Update
Recently you may have read or heard on the news about the implosion of improper processing of foreclosures by banks and lenders across the country. All the big banks are scrambling to deal with the national exposure of and admitting to widespread fraudulent processing of foreclosure documents. Bank of America has voluntarily put a freeze on all foreclosures including the marketing of REO properties currently listed for sale.
The problem has recently exploded in significance. Attorneys have begin looking in to the way banks have handled foreclosures and are finding numerous mistakes. Some of this inevitably was intentional and some likely occurred due to under staffing by the banks to handle the huge volume of foreclosures and distressed properties.
The cavalier way in which foreclosures were often allowed to proceed is exposing the lack of oversight by bank officials and is raising a lot of questions. This sloppiness is leading to several banks now putting a freeze on all existing and soon to be foreclosures. This could jeopardize the housing recovery and extend the time before we reach stabilization.
Here is a link to an insightful article written by John Mulkey, a seasoned expert in the housing industry: http://thehousinggurublog.com/?p=737. I would recommend that you read it. I believe there is a lot of merit to many of his points. Mr. Mulkey's position on this issue is one of many out there right now. Call or email me if you would like to discuss this topic.
October 2010
Larry Barton, REALTOR ® (S), SFR, CENTURY 21 All Islands Kauai
P.O. Box 223700, Princeville, HI 96722
(808) 639-7532 Cell / (808) 826-9884 Fax / Email Larry
P.O. Box 223700, Princeville, HI 96722
(808) 639-7532 Cell / (808) 826-9884 Fax / Email Larry