Foreclosures Suspended
Posted by Tamara Barnett-Mimms
A demand letter has been sent by the Texas Attorney General to 30 mortgage banking and servicing institutions asking that all institutions immediately suspend all foreclosures, sales of those properties that were previously foreclosed, and any evictions of persons residing in previously foreclosed homes until steps have been taken to adjust any past errors in mortgage documents.
Q. How will this demand letter affect your current transactions?
A. Although the demand letter has been sent to 30 banking and servicing institutions, the banks can choose to not honor the request. If an institution chooses to respond to the demand letter, the foreclosed properties listed for sale will not enter into a sales contract, the foreclosed properties currently under contract will have a delay in closing, closings will also be delayed on short sales that are pending, and evictions of persons occupying foreclosed properties will be halted until this dispute has been resolved.
Q. How will this demand letter affect your current transactions?
A. Although the demand letter has been sent to 30 banking and servicing institutions, the banks can choose to not honor the request. If an institution chooses to respond to the demand letter, the foreclosed properties listed for sale will not enter into a sales contract, the foreclosed properties currently under contract will have a delay in closing, closings will also be delayed on short sales that are pending, and evictions of persons occupying foreclosed properties will be halted until this dispute has been resolved.
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Disclaimer: The views and opinions expressed in this blog are those of the author and do not necessarily reflect the official policy or position of the HRIS.
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