Just an FYI...


October 12, 2010

Dear C.A.R. member,

No doubt you’ve heard the news recently that a number of major banks have volunteered to temporarily suspend foreclosures in 23 states and Bank of America is temporarily suspending foreclosures nationwide. 

While this situation is changing daily, I want to tell you what we currently know to answer any questions you may have.

  • In late September and early October some lenders and servicers began voluntarily halting foreclosures in select states while they reviewed their foreclosure processes.
  • So far, only Bank of America has extended its foreclosure moratorium to California, where the vast majority of foreclosures are conducted without a court order.  Foreclosures in the other 23 states are processed through the court system.
  • Non-judicial foreclosures in California, however, do have legal requirements that lenders must follow.  For example, California law requires that lenders for certain mortgage loans made between Jan. 1, 2003, and Dec. 31, 2007, attempt to make contact with borrowers to discuss options for avoiding foreclosure at least 30 days before filing a notice of default.  Lenders also must sign a declaration in the notice of default stating that they tried to contact the borrower, made contact with the borrower, or fall within an exception (such as a bankruptcy filing).
  • The lenders and servicers that have placed their foreclosure moratorium on properties in the 23 states where courts are involved in the foreclosure process include:  Goldman Sachs Group Inc’s Litton Loan Servicing, Ally Financial Inc.’s GMAC Mortgage unit, JPMorgan Chase, and PNC Financial.
  • These lenders/servicers have only temporarily halted their foreclosures while they review their foreclosure process.  This is in response to findings that questioned whether some lenders/servicers were following the correct procedures to foreclose on a property.
  • This halting of foreclosures is a voluntary action taken on the part of these lenders/servicers and has not been mandated by either the states or the federal government.
  • Some members have begun to report the immediate impact of this moratorium on transactions that involve foreclosed properties.  Delays in escrow and the removal of listed foreclosures are temporary results of this moratorium.
  • The immediate impact on the market will be the slowing of home sales, which could put upward pressure on home prices in the short term.  The long-term effect on the market is uncertain at this point as it depends how long the moratorium remains in place.
  • Assuming the moratorium is lifted in the next month, the flow of REOs to the market should resume, but the uncertainty created by the moratorium may cause hesitation on the part of buyers.
  • Federal agencies, including the Office of the Comptroller of the Currency, the Federal Housing Administration, and the conservator of Fannie Mae and Freddie Mac, have asked lenders and servicers to review their foreclosure processes.  This review would apply to all states including those like California where the vast majority of foreclosures are non-judicial.
  • The participating lenders and servicers believe their internal review processes should take anywhere from a few weeks to 30 days to complete.

NAR has sent a letter to regulators expressing their concerns over the foreclosure issue.  Please visit www.realtor.org/foreclosure for the latest developments and additional information.

C.A.R. is supportive of lenders taking action to ensure homeowners are not improperly foreclosed on and that they are following state law.  We hope they are able to conduct their review expeditiously so as to minimize the impact on California’s housing market.

If you have additional questions or are experiencing problems or delays with any foreclosure transactions, please call our Customer Contact Center at (213) 739-8227.


Steve Goddard
2010 President

  David Ames 

  Top Producer 



  (415) 271-2071

Comment balloon 12 commentsDavid Ames • October 12 2010 07:30PM
Just an FYI…
Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS® … more
OK… now I'm just bragging!
OK… I admit it, this is really just a shamless "Bragg" about our company's recent award for Best Outstanding Achievement by IMA (Interactive Media Awards) for our new website The Zephyr media and… more
It's not a secret, but it's definitely worth sharing… (you might…
I took some time this afternoon to peruse another Amazing "tool" that our Board of Realtors recently implemented as part of their ongoing commitment to information access and support for the real estate community and property owners of… more
Staging and Marketing 101: Dining Room = Dining Room
OK… it's one thing to LIVE in your home in a manner that's comfortable and/or practical for you. After all, it's YOUR home! Now that you're a SELLER things have changed. Although this is one of the hardest concepts that sellers must… more
OK "Mr. or Ms. Self Employed"… so you want a loan, eh?
I admit this is more of a "rant" than it is an avenue towards offering a constructive solution to today's lending environment. We all know the days of "stated income" or "no doc" loans are over, (or at least for now… more
Time for a Glass of Wine!
Driving up to Napa this afternoon for a little R&R… If you've ever wondered why the California State Colors are Blue and Gold some will tell you the 'gold' is for the poppies (or the gold discovered decades back)… However, the real… more
To my L. A. friends…
This is for my 'circle' of 'Los Angeles' friends… (and yes, you may "enter")… Just saw this street sign in the Berkeley Hills after having lunch with a client of mine who recently left "the City" for greener, suburban… more
All right, Mr. DeMille, I'm ready for my close-up…
or… "I AM big, it's the pictures that got small!.. " Atta girl! You tell em. Many of the Real Estate agents here will mix in close-up shots into their MLS postings.. photos of furniture groupings, doorknobs, fireplace… more
Exquisite Russian Hill VIEW home…
Just entering the market today… 3 bedrooms, 2. 5 baths, + exlusive use garage space for one car. The views are a knockout!!! For those who may be wondering if we staged the property, the answer is no. This is actually how the seller lives. … more
Kids are "King", but Queens get more respect…
When touring the average bedroom, do you ever hear a potential buyer say, "I wonder if we could get a twin bed or crib in here? " Probably not. Sometimes you have to literally show the potential of the space at it's maximum value… more