Major banks including Bank of America, GMAC, and JP Morgan Chase are halting foreclosures to investigate if homes were properly foreclosed upon since issues have arisen from incorrect paperwork being filed and from concern regarding the entity actually foreclosing on many properties (MERS (Mortgage Electronic Registration Systems)). Bank of America is temporarily freezing foreclosures in 23 states.
Investors who are looking to purchase bank owned properties may not see many bargains on real estate in Colorado Springs during this foreclosure freeze. We will most likely see a temporary increase in home prices since foreclosure sales will be minimal. Investors can still find good buys in the Short Sale arena but those transactions usually take more time to close.
Once the foreclosure moratorium is over, investors will probably see a considerable amount of bank owned properties hit the real estate market in Colorado Springs. Once this occurs, we will most likely see home sale prices take a dip once again. Additionally, many of the properties will have sat vacant for a period of time which may result in plumbing breaks even if the properties were winterized during the cold season.
Investors may want to move forward on purchasing bank owned properties they have been considering since we may not see a whole lot of them hit the market for a while!