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Foreclosure Deal to Spur U.S. Home Seizures

Posted By admin On February 10, 2012 @ 4:52 am In U.S. News | Comments Disabled

Prashant Gopal and John Gittelsohn
Bloomberg [1]
February 10, 2012

The $25 billion settlement with banks over foreclosure abuses may result in a wave of home seizures, inflicting short-term pain on delinquent U.S. borrowers while making a long-term housing recovery more likely.

Lenders slowed the pace of foreclosures as they negotiated with attorneys general [2] in all 50 states for more than a year over allegations of faulty and fraudulent paperwork used to repossess homes. With yesterday’s agreement, banks are likely to resume property seizures.

“The best thing about the settlement, frankly, is that it will be done,” said Stan Humphries, chief economist for Seattle-based Zillow Inc. (Z) [3], a provider of home-sales data. “The shadow of the settlement hung over the market for a year now.”

The backlog of foreclosures has trapped homeowners in properties they can no longer afford, depressed neighborhood prices by increasing the number of abandoned homes and led banks to tighten mortgage credit standards because of uncertainty about the cost of their potential obligations. Foreclosure starts fell 46 percent in December from October 2010, when the investigation into the so-called robo-signing of mortgage documentation began, according to Irvine, California-based RealtyTrac Inc.

Full article here [1]


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URL to article: http://www.prisonplanet.com/foreclosure-deal-to-spur-u-s-home-seizures.html

URLs in this post:

[1] Bloomberg: http://www.bloomberg.com/news/2012-02-09/foreclosure-deal-to-spur-new-wave-of-u-s-home-seizures-help-heal-market.html

[2] attorneys general: http://topics.bloomberg.com/attorneys-general/

[3] Zillow Inc. (Z): http://www.bloomberg.com/quote/Z:US

[4] Home Foreclosure Rates are Comparable to the Great Depression: http://www.prisonplanet.com/home-foreclosure-rates-are-comparable-to-the-great-depression.html

[5] Lauderdale man’s home sold out from under him in foreclosure mistake: http://www.prisonplanet.com/lauderdale-mans-home-sold-out-from-under-him-in-foreclosure-mistake.html

[6] U.S. Foreclosures Rise 55%, Bank Seizures Reach High: http://www.prisonplanet.com/us-foreclosures-rise-55-bank-seizures-reach-high.html

[7] The Second Foreclosure Tsunami Is Coming, And Is About To Kill Any Hopes Of A “Housing Bottom”: http://www.prisonplanet.com/the-second-foreclosure-tsunami-is-coming-and-is-about-to-kill-any-hopes-of-a-housing-bottom.html

[8] U.S. Foreclosure Filings Hit Record for Second Straight Month: http://www.prisonplanet.com/us-foreclosure-filings-hit-record-for-second-straight-month.html

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