As reported in the OC REGISTER, 10/11/10

CountyRecordsResearch.com and ForeclosureRadar.com help investor clients learn about and purchase properties in foreclosure. How much of a hit do these companies and the people they serve expect to take by the Bank of America temporarily suspending posting notices of trustee sales in California, as the lender sorts out the way it handles the foreclosure process?

Bob Baker, sales manager, CountyRecordsResearch.com:

“If you put a freeze on the foreclosure process, you’re telling lenders they have no recourse in the event of non-payment. Then they’re simply not going to lend. A freeze is the last thing our economy needs right now. Foreclosure sales are fueling our real estate market.”

“We’re going to still see more foreclosures. Even if they put a halt on some of them you’ve got foreclosures pending that are ongoing. You have hard money lenders, you have seller carry backs, there are a variety of smaller lenders, they’re not just all Bank of America or Countrywide [one of the companies taken over by BofA.]

“What we’ve been seeing anyway is a lesser number of default notices being filed, but a greater number of properties going to auction.’’

Mark Skilling, chief operating officer and general counsel for ForeClosureRadar.com:

“I can’t give you a quick answer to the percentage of NTSs [notices of trustee sales] on record in CA. that are by BofA; however, BofA has taken a relatively small percentage of foreclosures to trustee sale recently so we are not expecting a major short-term impact. Perhaps more importantly is that we expect even less of a long-term impact. The BofA announcement could be seen as largely a zero-cost, positive public relations campaign that is in its own best interest because it allows for further delay of foreclosure losses that it can’t easily afford to take.

“The reality of the BofA moratorium is that it may be just another temporary delay, the likes of which we have seen many times before in the form of State and Federal legislation (For example, California Senate Bill 1137 and the Federal HAMP program) and earlier voluntary lender moratoriums, such as the one that followed the Fannie Mae and Freddie Mac conservatorship.

“Here [in Calfornia], BofA should be able to quickly and efficiently conduct an internal audit to assure it’s customers that the foreclosure process that it uses in California is appropriate."

So, tell me what you think..Do you think this will help or hinder our real estate market now?

Your thoughts and feedback on this topic are greatly appreciated. Please feel free to post your comments.

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