New Jersey Real Estate Brokers Await Results of Foreclosure Review

by on Foreclosures

Real estate brokers and housing market observers are waiting for what would come next after the state of New Jersey agreed on a settlement with several major lenders which entails the appointment of a reviewer who will look at pending foreclosure cases in the state. According to local reports, the purpose of the review is to see whether lenders and banks have correctly filed for foreclosure motions and whether the process used was sound.

The agreement will mean that thousands of Newark foreclosed homes and foreclosure cases from all around the state will be re-examined by a court official, who will be appointed by the state. The purpose is to find out whether mortgage servicing firms have accurate records of the mortgage loans they have on their books. The agreement still requires the approval of the civil court judge who oversees the case, and banks involved in the agreement will still have to provide answers by next month regarding their foreclosure processes.

According to reports, the agreement came about several months after an order from the state Supreme Court was issued to fight faulty processing of New Jersey foreclosed homes for sale, with some lenders accused of pushing through foreclosure cases using questionable documents. However, the courts did say that there is no reason to halt foreclosures in the state.

Several banks operating in New Jersey have asserted earlier that they already initiated changes to the processing of foreclosed properties sold by real estate brokers in the state. Under the settlement though, these banks will still be asked to submit certifications that their record keeping practices are sound and should also present proof that they have quality assurance programs in place.

The banks will have to present a list of bank homes for sale and foreclosure cases that have been pending when the order for a review was issued in December 20, 2010. Local authorities have revealed that if a foreclosure case has been found to have been processed without following proper protocols, that particular case will be put on hold until proof is presented that new procedures have been put in place.

Analysts believe that the settlement has a huge impact on the state's housing industry and on all parties involved in the residential real estate market, including banks, real estate brokers and particularly homeowners. For now though, everyone is still waiting for a final decision on the settlement, which is expected to be ironed out by April of this year.