Robo-signing fallout affects Virginia

How are the robo-signing scandals and lenders’ self-imposed foreclosure moratoriums affecting Virginia real estate markets?  Here are some stories to help get you up to speed:

NAR has been at the forefront on this issue, meeting with regulators, legislators and lenders to help resolve the crisis. Click here to download a summary of their efforts.

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One Response to Robo-signing fallout affects Virginia

  1. Joe Vita says:

    This is such a serious turn of events for all of the nation’s banks, real estate markets, and the realty business in general that it would take than an article rather a short comment to give the matter proper coverage. A clue lies in the fact that banks decided to police themselves though attornies general in all 50 states are starting their own investigations.

    While foreclosed properties are filling up the banks’ spreadsheets, the numbers for September topped 100,000 for the first time ever.

    Suffice it to say that the foreclosure moratorium will effectively shut down on average about 40% of whatever market activity there is for an indefinite period of time because that’s about their market share. Its effects extend beyond market activity to title questions on past sales as well as title coverage problems and costs for future sales of foreclosed properties. The impact will be felt in related industries that support all kinds of rehab work typically performed on resales.

    What a huge mess caused by lenders who screwed up yet again. They will probably suffer significant losses as they become stuck with literally millions of properties they cannot unload and entertain large numbers of related lawsuits. Some could even go out of business as a result. Speculation already exists that they will wind up attempting to offset losses by increasing fees connected to home loans. None of this will serve to motivate qualified buyers who are still sitting on the fence waiting for the right time to buy.
    Like I just said, what a mess!

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