Florida Foreclosure Sales to Restart with Fannie Mae and Freddie Mac

REO selling agents for Fannie Mae and Freddie Mac have been given the go ahead to restart transactions that had been suspended due to potential problems with the legal paperwork, known as the "Robo-signer" scandal. The GSEs were forced to temporarily halt the sale of certain properties two months ago when news surfaced that some of the nation's largest servicers - including Bank of America, JPMorgan Chase, and GMAC Mortgage - had been employing robo-signers who failed to comply with clearly defined state laws when handling foreclosure documentation.

From DSNews:

The flawed casework from servicers and legal firms has raised questions about the validity of some foreclosure actions and the legitimacy of title ownership in the sale of repossessed homes.

Now that most of the servicers at the center of the paperwork mess have completed a large chunk of their case reviews and found no evidence of improper foreclosures, Fannie and Freddie are moving to proceed with foreclosures and REO sales as customary.

In a memo last week, Fannie Mae told its REO selling agents to "proceed with scheduling and holding the closings" and to direct matters to the appropriate staff "if a title issue arises with respect to the potential defect of an affidavit used in the underlying foreclosure."

Freddie Mac said in its own memo that agents should "resume all normal sales activity." The GSE reaffirmed that it will "resume marketing, sales, and disposing of assets previously placed ‘on hold.'"

As of September 30, Fannie Mae's inventory of single-family REO properties stood at 166,787. Freddie Mac's REO inventory totaled 74,897 homes at the end of September. Together, the two GSEs hold about a quarter of all bank-owned residential properties in the United States.

***************************************************************************

Rodney Forbes is a Realtor® and registered broker with Forbes Realty of South Florida, based in West Palm Beach Florida. Rodney and his team work in Palm Beach, Broward, Martin and St. Lucie Counties. As a recognized expert on short sales, Rodney has been featured on radio and national web conferences for agents. Rodney has also authored the book "Should I Short Sale My Home?"For more information, please call Rodney at 561-337-4810 or email Rodney@ForbesRealtyOnline.com

Forbes Realty of South Florida also specializes in REO asset disposition. Rodney works with several banks and asset managers in the Palm Beach County area. Rodney is the main author for the popular real estate blog South Florida Real Estate Report. You can find a wealth of information regarding bank foreclosures, short sales, real estate news and local real estate trends