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News Link • Economy - Economics USA

Bank of America foreclosure-sale freeze may hamper Phoenix area housing market


A temporary foreclosure-sale freeze announced by Bank of America 12 days ago gives most distressed homeowners little hope of avoiding a foreclosure but raises a host of new concerns among housing analysts.

Chief among those concerns: That a delay in foreclosures now by one of the Valley's biggest mortgage-holders will result in an oversupply of foreclosure homes for sale in the near future, further driving down metro Phoenix home prices.

Public records show the bank has not completed the last step of the foreclosure process - an action called a trustee sale, in which the house is taken from the borrower and sold at auction or given back to the lender - for any Phoenix-area homeowner since the Oct. 8 announcement.

At the bank's previous pace of about 50 homes a day, that means about 350 homeowners have remained in their homes through Tuesday.

However, BofA has continued to start new foreclosures, filing paperwork to begin proceedings on almost 300 Phoenix-area homes since Oct. 11.

Basically, homes continue to enter the foreclosure pipeline as normal - they simply aren't yet coming out the other side.

The idea of homes accumulating in that pipeline has analysts worried.

"I can't see how this will help the market," said Mike Orr, publisher of the "Cromford Report," an online daily analysis of metro Phoenix foreclosures and home sales. "It is more likely to hurt the market and drag out the pain a bit longer."

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1 Comments in Response to

Comment by Hugo Tellez
Entered on:

 I just found out that Ruth McClung running for 7th district, recived 2,400 from BoA, I cant belive i actualy thought she meant well, but she'll be just like the rest of them..

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