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What You Need to Know About the Foreclosure Moratorium

Homeowners here in Ann Arbor who have been following the news during the past week, know that many banks have called for a moratorium on foreclosures. Bank of America, one of the major mortgage lenders here in Michigan, was the first to extend their review of foreclosure documents to all 50 states. As of yesterday (10/25), Bank of America resumed  foreclosure activity in 23 states, while continuing their nationwide review. Here are some questions and answers which will help to shed some light on the current foreclosure situation. Answers have been provided by Bank of America:


What is a foreclosure sale?
After a severely delinquent customer goes through the foreclosure proceedings, their home becomes the property of the investor or bank. At that time, the home is sold at public auction. It is only after that time that a customer may be evicted from their home.


What does this mean for customers currently in the foreclosure process?
Bank of America will continue the foreclosure process on delinquent borrowers, but will not proceed to judgment or with a foreclosure sale at this time. Foreclosure sales which were scheduled for October 9 or later were stopped and will be rescheduled at a later date.


Why are banks taking this action?
Due to questions raised about the foreclosure affidavit-signing process, steps are being taken as a precaution. Most lenders are reviewing their processes for handling foreclosure documents.


What is a foreclosure affidavit?
A foreclosure affidavit is a legal document filed with the court that provides a summary of information about the foreclosure, the property and the amount that is owed on the note. In 23 states where the courts have jurisdiction over foreclosures, an Affidavit of Indebtedness must be submitted before proceeding with the foreclosure.


Are you a homeowner who wants to avoid foreclosure in Ann Arbor, and needs to know your alternatives? Contact Martin Bouma, a Certified Distressed Property Expert (CPDE), who can help you find an alternative to foreclosure. If you are interested in buying or selling a home, The Bouma Group can help you with your real estate needs in Ann Arbor, as well as keep you up to date about Washtenaw County and Ann Arbor neighborhoods.

Posted Wednesday, October 27, 2010 by Martin Bouma
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