Foreclosures in Las Vegas have dominated the housing market news for a couple of years now. Inventories continue to hold steady or rise, even though investors and buyers are taking them off the market through purchases. And, it's certainly big news about the lowest mortgage interest rates in decades. With investors pouring money into bonds and U.S. Treasuries, interest rates are hovering just below 5% for 30 year fixed rate mortgages. Just when a wary would-be home buyer might be tempted to come off the fence and check out foreclosures to get that discounted dream home at a low payment, the latest news is all about the halting of foreclosure actions by major lenders. Some have even placed listings on hold, not allowing sales at this time. Others are still selling the homes that have completed the foreclosure process, but buyers have a new concern with this latest news. What would happen if you buy a foreclosed home and the courts decide that the lender didn't do the foreclosure paperwork properly, and they void the sale to give the home back to the original owner? While this is certainly an unpleasant thought, it's highly unlikely that this will be a commonplace event for a number of reasons:
- The original owners were in just about every case very late on their mortgage payments.
- Few of those owners could make a valid case that they were damaged by these document problems, as they were going to lose the home in any case.
- While it's election time for many Attorneys General, and they will make a lot of noise about investigations, it's likely that banks will get fined but it's not likely at all that large numbers of homes purchased out of foreclosure will be returned to the process or the previous owners.
- If you can purchase a foreclosed home now and get a title insurance policy, there is protection against this type of claim later.
So, speak to your mortgage professional and continue to look for your home if that's your plan.
For questions about pursuing a foreclosure purchase
Contact Casey Moseman