Are They Holding Back Recovery Also?
Well, it’s sort of a, “good news, bad news” scenario. Let’s start with the facts:
- Both the GMAC Mortgage Corporation and Chase Bank have decided to stop the sale of foreclosures across the country to review some of the processes.
- They will mainly be looking over document signing and other papers.
- The suspension of these foreclosure proceedings will have an artificial positive effect on new foreclosure filing numbers for the coming months.
The Good News…
The setback will give some homeowners a chance to stay in their home longer than expected. For some, this could be an opportunity to solidify plans to keep the home or come up with an alternative solution. For the rest who have already decided to abandon home ownership or cannot find another solution, the extension will have little effect, except to draw out the inevitable.
The Bad News…
An unfortunate result of this delay in the process is that it will back up the already clogged waters of foreclosure. This, many believe, is bad news for the recovery effort. I must agree. If you’ve been affected by the suspension of your foreclosure, I recommend looking at all your options before making a decision.