Friday, November 16, 2012

Sandy halts foreclosures

"Before Superstorm Sandy, some of the hardest-hit areas in New York, New Jersey and Connecticut were experiencing a huge spike in foreclosures. But now that a moratorium on foreclosure activity in these disaster areas has been put in place, the foreclosure problems are about to get worse.

In the 34 counties that have been declared disaster areas, close to 125,000 homes were already in some stage of foreclosure or bank-owned at the end of October, a 54% increase from the year before, according to RealtyTrac, an online tracker of foreclosed properties.

Ever since the $25 billion mortgage settlement was reached last spring, lenders have been working through a heavy backlog of foreclosures that had been accumulating since the robo-signing scandal arose two years ago. The agreement cleared the way for banks to start filing paperwork on delinquent borrowers and pursue those who were further along in the foreclosure process."

Even though there is a moratorium the banks most likely don't want them if they really have no collateral.

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