Thursday, October 07, 2010

Bank Servicing Companies Stopping Foreclosures

My first time home buyers, were excited they were at the end of the transaction purchasing a bank foreclosure and making preparations to close the end of this week, until the we received notice, that banks servicing company has stopped this transcation from closing until further notice

Bank of America, JP Morgan-Chase, and Ally Financial, have halted all their foreclosure transactions, until a thorough review of all the foreclosure documents have been done and its determine the title to the properties have been done correctly and legally. 

This means that properties in the middle of foreclosure process has been stopped, properties already available for sale have been stopped, and properties waiting for close has been stopped.

Even Old Republic the nations top title insurance company has refused to issue title policies on Ally Gmacs pending transactions.  

This is causing a lower amount of foreclosures to hit the market, and pending transactions waiting to close stop.  If you are considering purchasing a bank foreclosure, your agents maybe able to find out the servicing company (they change frequently on properties) to see if the property your are interested in is effected.