What Foreclosure Freezes Mean for Distressed Homeowners

CDPE Blog
Posted: 10 Oct 2010 12:52 PM PDT
It’s hard to miss the news in real estate today: major lenders are investigating issues in their foreclosure processes. To date, GMAC (now Ally Financial), JPMorgan Chase and Bank of America have announced foreclosure freezes to review how their companies are handling the process. While most lenders have stalled foreclosure procedures in roughly half the nation, Bank of America recently extended their freezes to all 50 states.

However, few are talking about what this means for distressed homeowners and the agents who can help them. While these major lenders evaluate their foreclosure processes, delinquent and seriously delinquent homeowners now have more time to evaluate alternatives to foreclosure. Real estate professionals, particularly CDPE-designated agents, have an opportunity to reach out to these homeowners and educate them about their options.

Not every distressed homeowner may qualify for a short sale. But in this economy, the real estate agent has the opportunity – some might say, the responsibility – to find solutions for homeowners in need, even if it does not result in a sale. This will help to stabilize community values and salvage financial futures for those facing true hardships.

It’s important to note that time may be short in these foreclosure freezes. GMAC was even quoted as stating their halt could extend through the end of the year, but may be as short as a few weeks. Take this opportunity to engage homeowners who may feel they have no other options. It’s an opportunity to make a huge difference.