I’ve updated the information in this post since speaking to a Wells Fargo Banking advisor – 11/09
It was introduced as Senate Bill X2-7 and has continued and will still be in effect for certain mortgages until 2011. What is means is that there is a delay in the processing of foreclosed homes.
This is how Fannie Mae explained how they handled the moratorium:
Fannie Mae’s “suspension”, of foreclosures on occupied single-family properties, which began on November 26, 2008, was in full force for the majority of the first quarter of 2009. The suspension was a temporary measure to ensure that borrowers had access to help while Fannie Mae put in place additional foreclosure-prevention practices.
What this means for our current real estate market is that we will NOT begin seeing more bank owned properties available for purchase. There will not be a huge release of “Bank Owned”, homes all at once.
Certain loans that are affected by the moratorium will have their “Notice of Default”, filed with the County Recorder’s office but no “Foreclosure Action”, will take place until moratorium is lifted for that particular loan. Remember that every home loan that falls under a certain criteria will not have foreclosure action taken against it until the moratorium for that loan is lifted. Some will not be affected until 2011!!!
In Temecula the amount of foreclosed properties has decreased and as soon as one is available there are several offers within days of the property showing up in the MLS.
No one is overjoyed at the prospect of more foreclosures however, we all knew it was coming as an expected result of our current economic crisis.
Hopefully, the homeowners who have lost their homes can begin the path to recovery. It is a hardship that is difficult to endure and I personally know of several families who are living with relatives to regain their composure after they lost their home.
Please visit our website for the most current foreclosure listings: Southwest Real Estate, Inc.