Foreclosure Restarts Get Slow

Dec 3
09:55

2010

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rudson tren

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A couple of banks have started initiatives to restart their foreclosure procedures. However, observers note that the restart efforts remain slow.

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JP Morgan Chase & Co and Bank of America have finally started efforts to resume sales of about 230,000 foreclosed homes across the US. However,Foreclosure Restarts Get Slow  Articles observers noted that the mortgage lenders are hitting snags. Thus, it is expected that numerous foreclosure cases would remain unclear until the early part of next year.

According to the lenders, some complications and issues are contributing to slow down the process. Such complications range from hiring of unfamiliar or new legal firms to handling of documents related to foreclosure of homes. Observers note that it also takes time for banks to make sure procedures are correct and are being properly followed, especially because revised or new files have been submitted across up to 23 states, where approvals from courts are required as part of foreclosure processes.

However, they added that those delays should not be taken as signs that documentation problems get even worse than were disclosed previously by major mortgage lenders. Bank of America insists that it has started refilling documentations on several of foreclosed homes, which need to be properly approved by a court. It added that it would start resubmitting up to 102,000 affidavits regarding pending foreclosures.

The bank assured that its foreclosure process is picking up despite a slow pace. It expects to obtain thousands of affidavits more in courts before the end of December. However, it would not provide any estimate about how long it could process those cases that are now being reviewed by its staff.

For its part, JP Morgan expects to begin refilling foreclosure affidavits in the next several weeks. The lender admits that it is yet to formally restart the process. It said it wants to make sure it is on the right track before doing any action. The bank plans to submit revised foreclosure documentations of up to 127,000 homes in three months to four months.

Bank of America and JP Morgan were among the mortgage lenders that halted their foreclosure processes in September. The action came after numerous complaints were filed alleging that the lenders mishandled foreclosure processes. The complainants asserted that the lenders at times proceeded to foreclose properties even if they were not supposed to do so. The banks’ action triggered a complete halt or slow down of foreclosure procedures across the US.

For more news, updates, and information about the foreclosure housing market, visit ForeclosureConnections.com. The Website is regularly updated to bring the freshest and newest property news.