Sunday, February 26, 2012

Foreclosure delays leave homeowners in limbo

Foreclosures across the nation slowed in the wake of the 2010 robo-signing scandal, in which lenders were accused of rushing through foreclosure documents without proper review, an issue recently settled by banks, the federal government and 49 states.

Delayed foreclosures create an ambiguous situation for homeowners and lenders. Homeowners are free of monthly housing payments while they await eviction, allowing many to pay other bills. But they live with the stress of knowing they ultimately will lose their homes, and the knowledge that their credit rating has been badly damaged. At the same time, lenders are stuck with assets that are losing value and are not producing any income.

Read the full article at The Chicago Tribune

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