Banks are having a moritorium on foreclosures!
Posted by thomasomason on November 14, 2008
That’s right, you heard me (or read me)!I was in a meeting in the Carrollwood area and heard two of the largest lending institutions in the Tampa Bay area have stopped the foreclosure process for the near future. From what I hear it’s CitiGroup and Bank of America with another large lender poised to follow suit. Due to the size of these banks I am sure their decision will not be limited to just the Tampa area. I haven’t had a chance to verify all this late breaking info but my source is reliable. What does that mean. 1. It tells me they have come to their senses. They have to pay real money to law firms to file a foreclosure, and it shows up as a ding on their record which effects what interest rate THEY have to pay to get their money to lend out. 2. There will be less people that HAVE to sell ASAP so the number of homes on the market will go down. The law of supply and demand says home prices will at the very least stabilize in the near future. 3. It tells me they may be positioning themselves for some bailout dollars.
What do you think?
