The national foreclosure crisis will slow the recovery
From Cynthia Scott of OMC Financial Services:
>>Many lending institutions are unable to produce original signed mortgage documentation including the mortgage note which is necessary in order to legally foreclose and have rubber stamped the foreclosure procedure. During the housing boom, most mortgages were sold to other lending agencies or investors.
>>Consumer confidence will continue to be a drag on the economic recovery because of the uncertainty created
>>Lending institutions will be more hesitant to fund mortgages because they have to hold mortgages that are not being paid
>>Sellers of home properties will be affected by declining home values and buyers will be hesitant to make purchase offers because of it
>>Lending institutions earnings will be impacted by not being able to foreclose and resell the property
>>Legal actions against these institutions will slow resolution of the problem
>>Not all lending institutions will participate in stopping foreclosures so a great deal of uncertainty will be created among homeowners as well as investors
>>Many individuals who have already lost their homes through foreclosure have no recovery recourse
>>An entire new industry has been created to sell foreclosed properties and the moratorium will affect it
