With announcements from three of the nations largest mortgage lenders that they will halt foreclosure proceedings and sale in 23 states as a result of allegations of document fraud comes a new wrinkle: those seeking to buy foreclosed homes are having increasing difficulty doing so. In states with extremely an extremely high volume of foreclosed homes, such as Florida, consumers are finding that home purchase contracts, some already approved and on the verge of completion, are being suspended anywhere from 30-90 days to ensure that the homes were foreclosed and repossessed properly. This has left many of those potential homebuyers virtually homeless and scrambling for some place to stay.
Most of the homes that are being withdrawn from the market are owned and held by mortgage giant Fannie Mae. Many commercial mortgage lenders, such as Bank of American and Wells Fargo, sell their repossessed homes and accompanying mortgages back to Fannie Mae once the house has been repossessed and Fannie Maw has been busy in recent weeks sending emails to real estate agents to remove Fannie Mae properties from their listing and to freeze deals on existing Fannie Mae homes. In one instance, a South Florida realtor stated that half of his sale inventory has been wiped away by the freeze.
This is the latest in a series of unintended consequences of the foreclosure fraud fallout that continues to harm U.S. consumers. If you live in Ponte Vedra Beach or Jacksonville and you are facing a Florida Foreclosure lawsuit, contact a Jacksonville Foreclosure Lawyer or a Florida Foreclosure Lawyer today for a no cost consultation to review your case.
