Foreclosure Update

It has been widely reported in the news that several of the large national lenders have stopped foreclosure proceedings in a number of states, including Indiana. This has resulted in some listings being withdrawn from the market and closing delays. MIBOR has been in continued contact with the National Association of REALTORS® Washington Lobbying Office, communicating the concerns of MIBOR members.


Up to this point, the following is what we have learned from NAR who is closest to this situation.

• There’s no way of knowing what percentage of foreclosures that were processed, were inappropriately or wrongly taken. The assumption is that for the most of them, this may only be a technicality and that the property ultimately would have been repossessed.
• For owners who believe that their home was wrongly foreclosed, they may wish to contact a real estate attorney to investigate the possibility of a property claim. However, that could prove costly and time consuming – regulations vary by state.
• For banks, it may make sense to modify loans or agree to short sales to expedite disposal of inventory.
• For buyers, the assumption is that listing foreclosures come with clear property title, but they should discuss any necessary contract contingency with their real estate agent. Foreclosures in limbo are likely to be withdrawn from the market.
• It’s too early to tell if there is an impact on the market, but we will be monitoring the situation.

MIBOR will continue to monitor this situation closely, and will pass on information as it becomes available.
Indianapolis Real Estate