NAR takes shot at foreclosure policies

Officials with the National Association of Realtors have weighed in on the national foreclosure documentation crisis, raising their concern that thousands of first-time buyers will be prevented from moving into their property of choice.

Specifically, the NAR said that foreclosure moratoriums imposed by several lenders could have a damaging impact on many communities' abilities to recover from the housing downturn. A handful of major lenders, including Bank of America and Ally Financial, have ceased foreclosure sales nationwide while they conduct internal reviews of their foreclosure procedures. The actions come as controversy mounts regarding foreclosure documents that were allegedly signed without proper review.

The organization also issued a letter to the Treasury Department and the Department of Housing and Urban Development, urging the entities to facilitate a quick review process. Many real estate agents around the country have seen buyers who are intent on moving into a foreclosed property express reservations in light of the controversy, said NAR president Vicki Cox Golder.

"There are valid foreclosures that should move ahead quickly, and we shouldn't lump them in with mortgages that are suspect," she said. "That would cause deep problems in an already fragile market and throw many families into uncertainty."

The group is also holding a series of meeting with lenders such as Wells Fargo and Bank of America, with an eye towards encouraging short sales. Those transactions can help distressed homeowners make a "graceful exit" from foreclosed properties, said the group, while allowing others the chance of moving into a discounted home.
 

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