HOUSTON – After Bank of America announced Friday that it was halting home foreclosures across the country, local companies were forced to take action.
Litton Loan Servicing, a mortgage company based in Houston, stopped some foreclosures so it could review its documents. Another local company, Stewart Title, halted the sales of foreclosed homes.
"The victim, of course, is the family that really would like to move on from a foreclosure. That’s really the victim," said Steven Kaufman, owner of locally-based Zeus Mortgage.
Kaufman said the foreclosure moratorium is just delaying the inevitable for homeowners in a tight situation.
"While it will keep them in their homes through the holidays, for many that is little consolation," he said.
Cecilia Vignoli, a homeowner in Florida, learned the foreclosure documents on her home were signed by a GMAC processor.
"How can there be people like that to just, you know, do stuff without even being conscientious to what the consequences might be?" she asked.
Vignoli said the processor admitted he signed thousands of papers like hers every month, but didn’t read them.
"From a mortgage professional, to the world this looks bad for us," said Kaufman. "It’s just another reminder of loans gone bad."
The foreclosure issue started because so many loans were made during the housing bubble, and some of America’s largest banks said they didn’t keep up with the paperwork.
Kaufman said those who are have not yet been affected by the foreclosure crisis will be in the future
"It matters to us because we have artificial real estate prices," he said.
Kaufman predicts home prices will likely be lower in six months after foreclosures process once again and flood the market.
Lower prices are good news for future homebuyers but bad news for the seller.
