As if the housing market doesn’t have enough problems, the “robo-signing” controversy promises to complicate foreclosures even more.
The robo-signing controversy alleges that Bank of America, GMAC Mortage and JP Morgan Chase signed foreclosure documents without reviewing them. Some of these bank employees said they signed up to 8000 documents a month, which breaks down to 2 every minute using typical bankers hours. (Anyone who has looked at these bank addendums and documents knows you can’t read two an hour without getting bleary-eyed.)
Colorado is NOT one of the 23 states which has suspended foreclosure proceedings because Colorado foreclosures go through the Public Trustee. The states in question use courts who have jurisdication over foreclosure proceedings.
In this morning’s USA TODAY, one of the largest title companies said they would no longer issue title insurance on these bank-owned properties. (Steamboat title companies including Land Title, Stewart Title and Heritage Title are currently writing title policies on bank-owned homes.)
Without title insurance, buyers can’t get loans. Steamboat bank-owned properties have been selling well because buyers perceive them as good values. Buyers may hesitate to purchase these REOs if they can’t get title insurance. And if they can’t get title insurance, it opens up the possibility–however remote–that a former owner could come back and sue.
Steamboat foreclosures and bank-owned properties may decrease as lenders work through the robo-signing issue. If you would like to learn more about buying Steamboat property, please call us at 970-819-6372 or contact us via the web.