OK, we’re as excited as everyone else for the season premier of The Walking Dead this Sunday; but there’s another kind of zombie we don’t love as much: the zombie foreclosure. What’s a zombie foreclosure? It’s a property where the lender entered the foreclosure process, the homeowner moved out, and then the bank stopped the process — never taking the title, and effectively leaving the property abandoned. These abandoned properties can quickly deteriorate, and have a negative effect on surrounding property values. Thankfully, they’re on the decline.
Well, we’re four days into the new regulations, and — lo and behold — the sky has not fallen. It turns out there was a rush on mortgages last week, in preparation for the new regulations, but in most cases that may not have really been necessary. It appears that things are going smoothly at most lenders. The only real “danger” is that closings may take longer at the largest banks. If you’re looking at one of them, word on the street is that closing could stretch to 60 or 75 days.
Memories can be short lived. Sure, we all remember the mortgage meltdown of 2008. But do we really remember it? Would it surprise you to learn (or remember, or fail to remember), that one — and only one — executive from a major mortgage lender was found liable in a court of law? Rebecca Mairone, then COO for a division of Countrywide, in 2013 was found liable for misrepresenting the quality of mortgages. But the story is never quite that simple, as reported by Bloomberg Business.