SILVAR  :  Newsroom  : Real Estate Articles

Real Estate Articles

REALTORS® Say Families Will Suffer if Foreclosure Moratorium Continues

Wednesday, October 20, 2010

The National Association of REALTORS®  has formally objected to the recent foreclosure moratorium declared by some banks. The national REALTOR®   group says thousands of first-time and move-up buyers who hoped to make a foreclosed property their new home "now face uncertainty, anxiety and possibly remorse as they worry that closing on their desired property could be in jeopardy."

Banks say the moratorium is needed so they can review all of the foreclosures in their portfolios, to make sure they are in compliance with the law and that titles are clear. REALTORS®  warn a prolonged review process would hurt many struggling communities and hinder the nation's economic recovery.

"As a leading advocate for homeownership issues, we understand that many lenders need a time-out to review their actions to ensure that homeowners are not improperly foreclosed on, and that the lenders are following regulations and state laws. After that, the foreclosure process must resume quickly to return stability to families, the housing market and the economy," said National Association of REALTORS®  president Vicki Cox Golder.

Golder said she is receiving reports from REALTORS®  that the moratorium is already creating some anxiety among purchasers because transactions are being delayed, and some foreclosure listings are being removed from the market.

Over the past few months, the national REALTOR®  group has urged bank leaders to seek resolution quickly through loan modifications and the short-sale process, rather than through foreclosure. Compounding the problem is requirements for foreclosure vary by state and practices to meet these requirements vary by firm.

Jeff Bell, president of the Silicon Valley Association of REALTORS® , said the foreclosure freeze would certainly stall momentum of activity in some markets. "The longer this moratorium lasts, the further away from stabilization we will be," Bell said. "Perhaps this situation will force lenders to take a second look at their options, and look more favorably on loan modifications and short sales, instead of foreclosure."

In a letter to the U.S. Treasury Department, the U.S. Department of Housing and Urban Development, and the Federal Housing Finance Agency, NAR again urged the lending industry to consider more loan modifications and short sales for troubled homeowners, noting, "these options are far better than a foreclosure, and nothing has driven this point home more clearly than the questions being raised about foreclosures. Lenders should place additional resources into processing loan modifications and short sales."


The Silicon Valley Association of REALTORS® (SILVAR) is a professional trade organization representing over 4,000 REALTORS® and Affiliate members engaged in the real estate business on the Peninsula and in the South Bay. SILVAR promotes the highest ethical standards of real estate practice, serves as an advocate for homeownership and homeowners, and represents the interests of property owners in Silicon Valley.

The term "REALTOR®" is a registered collective membership mark which identifies a real estate professional who is a member of the National Association of REALTORS® and who subscribes to its strict Code of Ethics.

Variations of this article have appeared in local area newspapers.

For further information, please contact Rose Meily at SILVAR Public Affairs, email , or phone (408) 200-0109.

» Back to Real Estate Articles

Site Navigation