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Let's do a quick recap of recent news regarding foreclosures, banks and more. This recent article from DS News - Bank of America Halts Foreclosures Nationwide sums it up nicely.
On September 20th, GMAC Mortgage was the first to halt foreclosures in 23 judicial states due to what it called an “internal procedural error.” JPMorgan Chase followed suit on September 30th. PNC Financial reportedly notified its industry partners that it is suspending foreclosures for 30 days in the judicial states while it reviews servicing procedures.
Consumer advocacy groups, state attorneys general, and federal lawmakers are all calling for a nationwide foreclosure freeze until the banks can clear up the paperwork issues in question.
The impact on the housing market really depends on how long the moratorium is in place. In general, I agree with this commentary...