AG Requested Moratorium on Foreclosure Homes in Dallas and Whole State

by Donald Hanz on Foreclosure Help

Owners of foreclosure homes in Dallas and in other areas of Texas will likely get a reprieve, at least, until after the holidays, as state Attorney General Gregg Abbott sends letters to a total of 30 lenders operating in Texas to put a hold on foreclosures.

Although the request is meant to ease some of the problems faced by troubled homeowners, housing market analysts believe that a moratorium will not really help the state and will not make any difference on the number of bank foreclosures, including those that are under Citibank foreclosure listings.

According to analysts, a moratorium will not solve the problem but will only delay the inevitable as owners of Texas foreclosed homes will have to eventually deal with the problem anyway. Some local economists have weighed in on the issue and argued that a temporary hold will delay the process of clearing foreclosed properties from the housing market.

Economists are predicting that the move will set the unloading of properties under list of bank foreclosure homes by half a year at least. Abbott has reportedly sought to put a hold on the sales of foreclosed properties and the eviction of owners of foreclosed residences while lenders review their foreclosure policies and look into whether employees sign affidavits without reviewing them.

The request to put a hold on the sale of foreclosure homes in Dallas and in the rest of Texas came after country-wide news of robosigning, or the practice of signing foreclosure documents without first reading them, came out more than a week ago. Abbott has asked lenders to respond to his request on October 15, 2010.

Those who oppose the moratorium have stated that some politicians are using the issue to make a political statement and are ignoring the fact that such issues should be the concern of individual firms. They further added that it will not produce any positive result except a temporary decrease in the number of foreclosures entering the market, only to hit it later in droves.

So far, 53,000 foreclosure homes in Dallas have been posted for the year, representing a 4% increase from 2009. City housing experts have stated that the best way to solve this problem is to foreclose on bad loans and clear the market as soon as possible.

disclaimer