Who is Really Profiting from the Foreclosure Crisis?
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How Will the Foreclosure Moratoriums Impact the Las Vegas Real Estate Market?

Foreclosure Sign, Mortgage CrisisImage via Wikipedia

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 nation’s largest mortgage lender, Bank of America announced Friday that it is expanding its foreclosure moratorium from 23 states, as announced by the bank last week, to include all 50 states.

The impact on the housing market really depends on how long the moratorium is in place.  In general, I agree with this commentary...

For those who are praying for higher (or at least stable) house prices in the near-term, foreclosure-gate is good news: By stopping the flood of foreclosures onto the market, foreclosure-gate will reduce inventory-for-sale, which will likely act as a temporary positive for house prices.  So homeowners may get one more temporary gift at the expense of house buyers.

Of course, when the foreclosure-gate moratorium ends, which it inevitably will, a sudden flood of foreclosures will hit the market, as the banks try to make up for lost time. And when that happens, prices will likely temporarily plunge.  So sell while you can.

Read more: http://www.businessinsider.com/and-now-lets-think-about-what-foreclosure-gate-will-do-to-house-prices-2010-10#ixzz129TdquAf
Here are my observations and comments:
  • Las Vegas homeowners dealing with a distressed property sale may have a little more time in their homes.
  • Less REO inventory will push more sales in traditional listings and hopefully short sales
  • Let's hope the banks continue to work toward streamlining the short sale approval process and don't get bogged down or diverted to the latest priority (aka Crisis)
  • I'm not sure we will ever see the "flood of foreclosures" hit the market which would drag prices down further
  • Banks have been telling REO listing agents to get ready for the deluge of inventory for the past year
  • This moratorium will ultimately delay the already lenghty recovery time of the housing market
  • Short sales are not going away any time soon!

My best advice to real estate professionals is to embrace the Distressed Proeprty Market if you haven't already.  Get all the quality training you can.  Stay on top of the trends and distressed industry news by subscribing to industry leaing blogs like:

Business Insider

Housing Wire

DS News

Calculated Risk Blog



Do you want to learn more about Alternatives to Foreclosures, HAMP/HAFA, Nevada Foreclosure Mediation Program and how to implement an effective short sale system to generate more business?

Don't miss our next Certified Foreclosure Alternatives Designation Course


Next class: WEDNESDAY, OCTOBER 20TH ~ 9am-4:00pm ~ Lunch included!

Cost: $109

iMortgage 9139 W. Russell Rd., Suite 100, Las Vegas, NV 89148

(Behind the Bank of George in the Desert Canyon Business Park –
215 & W. Russell Rd. Take Jerry Tarkanian Way to W. Oquendo Rd.)

Register today at www.shop.stevenkitnickseminars.com

This course is approved by the Nevada Real Estate Commission for 7 hours of general continuing education credits CE.5094000-RE. The course is sponsored by Steven Kitnick Seminars.

Once you complete the Certified Foreclosure Alternatives Consultant Designation Course, you’ll be a trained consultant who understands the alternatives to foreclosure with an emphasis on the short sale process.


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