Foreclosure Moratorium Lifted



After over four months of speculation and uncertainty, the foreclosure
moratorium has been lifted by Fannie Mae and Freddie Mac, according to Mary
Kane of the Washington Independent (4/2/09).  Enacted initially to keep
families in their homes through the holidays, the moratorium was extended
for almost three months as a long term solution was sought for the influx in
foreclosure filings.  This announcement follows the stock market's recent
surge and positive housing sale news for the month of February.  With the
stopgap removed, agents and brokers can expect a stream of new sales
opportunities.  

The REO marketplace will immediately benefit from this news, but also will
be subject to slight changes in the procedure.  Homeowners facing
foreclosure can now explore alternatives during the process; a process which
differs for each state.  The new regulations allow lenders to offer a loan
modification to the homeowner, an effort to correct financing missteps and
keep homes occupied.  If unsuccessful, the homeowner and lender are able to
quickly pursue a short sale on the property.  While this serves as a viable
solution, the short sale process traditionally has been a complicated
transaction.  Both of these options may provide solutions for lenders and
homeowners, but the volume of REO properties is still expected to steadily
increase and impact the market in Q2 and Q3 of 2009.