UPV26H3RVW99Lately, the foreclosure crisis has been a hot topic and we wanted to give our readers an update as to what is going on nationally, and specifically, what it means to them here in the Cleveland area. We would like to thank one of our local mortgage partners, Sean Hadley of Heritage Mortgage, for providing us with this great information.
To begin, close to 300,000 homes are entering the initial foreclosure process nationally every month. Unfortunately, there is no reason to believe this large volume will start decreasing any time soon.
In recent weeks, the news has been dominated with stories about how lenders are not being able to legally foreclose on these properties. The ability of the lenders to foreclose was recently put into question. Apparently, documents were being improperly handled or not executed correctly, and some large lenders were told that they couldn’t continue legally foreclosing on homes. This led to numerous large banks calling for a moratorium on all foreclosures so they could take some time to re-evaluate their paperwork.
Nationally, the overall economic impact of the stoppage will probably be very minimal, provided the situation resolves itself in the near future. In areas where there are a lot of foreclosures, and where these mortgages are owned by lenders who temporarily halted foreclosures, there could be a shortage of inventory, thus temporarily increasing prices. However, this will be limited only to areas where there is a high concentration of foreclosures.
On a local level, many of the local banks cited that they were comfortable with their internal procedures and were doing business as usual. So at least here, there does not seem to be any major problems. For those looking to buy a foreclosed home in Cleveland, there may be some situations where a buyer may be temporarily inconvenienced by the situation and simply have to wait for a particular home to come on the market. Overall, there doesn’t seem to be a huge concern that this crisis will greatly affect the local real estate market.
As always, conditions can change quickly, so we will continue to update you on this situation as we get more updates.
About The Authors
The above information pertaining to Cleveland Real Estate News was provided by The Schuman Team, Amy and Dan, of Howard Hanna. They can be reached at 216-346-3235 or via email, danschuman@howardhanna or amyschuman@howardhanna.
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Foreclosure Update In Cleveland OH Real Estate Market is the property of The Schuman Team and may not be duplicated or used without their written consent. ©October,2010