Apr 06 2009
Fannie Mae & Freddie Mac lift moratorium on foreclosures…
The Clock Begins Ticking Again…
The Washington Independent posted an alarming article this past week that states that Fannie Mae and Freddie Mac have quietly lifted the moratorium that was in place on foreclosures. The agencies put this moratorium in place in late 2008 as a way to slow the potential tidal wave of foreclosure filings, and to allow the new Administration time to implement their economic recovery plan. Here’s the complete article from the Washington Independent –> Fannie, Freddie Quietly Lift Moratorium on Foreclosures.
What does this mean for the Peninsula?
If this is indeed true, the clock begins ticking again for those homeowners in the pre-foreclosure phase. In time, if these mortgages aren’t reworked to keep the owners in their homes, another wave of foreclosed and REO properties may hit parts of the Peninsula that was just recovering from the last wave. Considering how tough the job market currently is, I think in this round you may see some foreclosures in areas you’d least expect.
For investors, this means there may be more bargains coming on the market later in the year when this wave flushes through.
Action is better than inaction…
If you are unfortunate enough to be a homeowner in a very tough situation, the worst thing to do is to do nothing… The sooner you get conversation started with your lender, the better the chance you’ll have of hammering out a deal to stay in your home. With all of the pressure being applied on lending institutions to work out deals with borrowers who are in trouble, one would hope this would translate into some flexibility for troubled homeowners.
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