Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

Are anti-foreclosure laws threatening the economy?

By Apil Gupta Subscribe to RSS | July 16th 2012 | Views:

The recent developments in the United States in the wake of the passing of strict homeowner laws in Nevada has outraged many experts, who believe the recent laws have actually slowed down the entire foreclosure process, with no visible benefit to the homeowners. As per the National Conference of State Legislatures, a dual-party organization that serves the legislators in all the 50 states, more than 400 foreclosure laws have been enacted throughout the United States in 2011, and a majority of these laws slowed down the process.

The Nevada law was passed in October, and is supposedly the most stringent on in recent times. Lenders are imposed with criminal penalties if they try to foreclose a property without the required paperwork. This has resulted in a drastic decline in foreclosures in the state that was one of the hardest hit by the housing market crash in 2008. In September, banks had filed close to 5,000 foreclosure notices, but only 460 of these were served by February. According to real estate agents in the state, the lack of foreclosures has resulted in a shortage of supply, and the number of homes on sale is as low as 778, from 1,700 in September. This has led to a mini bubble in housing prices as there are fewer properties that are getting numerous bids. However, the gains are still not being seen as sustainable.

The bill also has not helped the situation, and has instead prolonged it further. It is expected that banks will eventually understand how they have to tackle this problem, and that is when the prices of homes will come crashing down. Advocates in the area are also having to turn down clients who don’t want to pay their mortgages but just wish to live in their homes for free. From a bird’s eye level, this is bad for lenders as well as homeowners. In a statement by Attorney General Catherine Cortez Masto, AB 284 was enacted in the wake of the fact that some mortgage loan servicers and banks were trying to use Nevada’s non-judicial foreclosure procedure to foreclose on homes in the state without any documentation that they could do so.

In a comparison between states where the foreclosure process is the longest and the shortest, six states were selected – Florida, New Jersey & New York (belonging to the former category), and Virginia, Arizona & California (belonging to the latter) – it was found out that in case of the latter, the trend for average sale price of foreclosed properties has been higher, which is an indicator of recovery. In Florida and New Jersey, home prices had increased last year as foreclosure activity was slowed down after the robo-signing scandal. However, in the last few months, foreclosure activity has picked up pace after a settlement between banks and the US government, resulting in a drop in home values once again. Hence, it is evident that these new laws have been the undoing of an economy that was otherwise showing glimpses of recovery.

Apil Gupta - About Author:
Contact you provide you with Va home loan rates, Home refinance, House loans, Adjustable rate mortgage, Home mortgage online .

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:

Related Mortgage Articles Subscribe to RSS

Best mortgage rate California – Use these time-tested tips
Published by Apil Gupta on June 24th 2012 | Mortgage
Finding the best mortgage rate California is more often than not like locating a needle in a haystac...
Bad credit and mortgage refinance option
Published by Kam Brar on December 16th 2011 | Finance
As people think, it is not easy to get mortgage refinance with bad credit. There are various factors...
Consultants to guide you for bad credit mortgage rates
Published by Jack Smith on July 26th 2012 | Mortgage
In the process of hunting for bad credit mortgage rates there has been seen an immense rise. But, to...
US mortgage reforms on the way
Published by Apil Gupta on July 16th 2012 | Mortgage
The US mortgage industry is set for reforms in the form of shorter forms, if the Consumer Financial ...
The best way of getting bad credit mortgage rates
Published by Jack Smith on June 20th 2012 | Mortgage
Be careful of getting axed by any broker while finding the best bad credit mortgage rates, as mean p...
Why is an adjustable rate mortgage so popular?
Published by Apil Gupta on June 24th 2012 | Mortgage
An Adjustable Rate Mortgage (mortgage ARM, for short), also known as the lender's Standard Variable ...
Second mortgage might require the help of a strong broker
Published by Thomasgalvin on January 3rd 2012 | Mortgage
Availing a loan for a specific purpose is one of he most arduous task in the whole wide world, what ...
Wells Fargo faces mortgage risk
Published by Apil Gupta on July 16th 2012 | Mortgage
One out of every three home loans in the USA is currently being funded by Wells Fargo and Co., which...
Be informed about Colorado mortgage or Denver mortgage and make a wise decision
Published by Serena Woods on February 15th 2012 | Mortgage
Being informed is never bad especially when you need to make an important financial decision....
Get out of a bad credit mortgage situation
Published by Jack Smith on June 20th 2012 | Mortgage
If you need a bad credit mortgage, there is no doubt that you are in a tight fix. But bail yourself ...
The top 5 most preferred mortgage types
Published by Apil Gupta on June 24th 2012 | Mortgage
When it comes to choosing the mortgage types that are available to a home buyer, the options are apl...
Lay your hands on the best mortgage rate in the market!
Published by Jack Smith on April 14th 2012 | Mortgage
While it may be a challenge to find the best mortgage rate¸ a good lender company can always make y...
Most excellent home mortgage calculator plus home buying tips
Published by Andrew Watson on December 30th 2011 | Finance
For a number of people it certainly is very much common to look around for best mortgage calculator....
Low interest rate brings cheaper mortgage deals
Published by Sandra Jeux on January 25th 2012 | Mortgage
Interest rates are at the lowest side for mortgages at current time which is leading people of the c...
Your guide to getting the best mortgage rates
Published by Jack Smith on April 18th 2012 | Mortgage
A systematic and well guided approach will certainly assist you in achieving the best mortgage rate ...
Explore the different options of mortgage rates available
Published by Jack Smith on April 14th 2012 | Mortgage
It is advisable to first thoroughly investigate about the most lucrative mortgage rate in the market...
The best mortgage rate is only a systematic approach away!
Published by Jack Smith on May 22nd 2012 | Mortgage
Investigate the property market well and fulfill your dream of achieving the best mortgage rate for ...
Consult well about Adjustable mortgage rates before selecting
Published by Jack Smith on July 23rd 2012 | Mortgage
Adjustable mortgage rates are turning worldwide popular because they offer variations on the rate of...
Should you go for a 15 or 30 year mortgage?
Published by Apil Gupta on June 24th 2012 | Mortgage
There are many times in life when one wants to possess something due to the sheer need of it, but is...
Exploring best adjustable mortgage rates as per expectations
Published by Jack Smith on July 23rd 2012 | Mortgage
The act and need for searching best adjustable mortgage rates is common in the world, where people s...