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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