Bank of America Foreclosure Mess: The Death of Housing?

by Rodney Forbes on October 13, 2010

Bank of America and other lenders are under attack again for the foreclosure mess that has brought about a freeze on thousands of foreclosure cases around the country. Since all crises with suspected fraud or wrongdoing have to have a name with “gate” on the end of it, we’ll officially name this as
“Robo-signer-gate” (you heard it here first!).

What’s the outcome? The end of housing as we know it? The end of the world as we know it? (sorry, R.E.M. already has that one). I’m not as pessimistic. With over 50% of all homes in America owned free and clear, and the overwhelming majority of homeowners with a mortgage are current, I believe this is just the natural result of the end of the housing boom.

How is that? If you go on a drinking binge what is the end result? Hopefully only a bad hangover. So what’s the result of the wild boom in real estate from 2003-2007 in certain areas of the country? Hangover. The inevitable flood of foreclosures around the country has overwhelmed the banks in their ability to deal with all the paperwork. The same thing is happening with short sales. The banks are overwhelmed with paperwork to process these.

The short sale process is starting to get more efficient with banks, and the foreclosure mess with get straightened out too.

Just don’t drink so much next time.

by: Rodney Forbes, video from CNBC
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If you are interested in buying or selling a home in the Palm Beach County area, specifically Palm Beach Gardens, Jupiter and West Palm Beach, please visit my Forbes Realty website. For frequently updated information on foreclosures, short sales, real estate news and market conditions visit my South Florida Real Estate Report blog. There are many free reports as well as free access to MLS listed properties. You can also call 561-337-4810.

Rodney Forbes is a licensed Realtor®, certified short sale/REO specialist and broker for Forbes Realty of South Florida Inc. Rodney has co-authored the book “Should I Short Sale My Home?”. Get your FREE copy at www.SouthFloridaRealEstateReport.com

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