
… because without sales of homes in distressed areas the “recovery in the housing market stops. It’s frozen,” according to White House Press Secretary Robert Gibbs.
He elaborates (via CNNMoney.com):
“That obviously can have — we believe and others believe — a very negative and detrimental impact to our economic recovery efforts and the housing markets in states that have been hardest hit.”
Of course, foreclosures are a last resort — loan modifications, short sales and all other rescue options should be exhausted before sending properties to the auction block. Additionally, the documentation process needs to be as accurate as possible, which is an issue that several major lenders are addressing right now during the “foreclosure freeze.”
Despite the “freeze” from some lenders, foreclosures are still for sale throughout the nation. And most of them are available to purchase for significantly less than market value.
The fact of the matter is that foreclosures need to happen “for there to be a full housing recovery” and because they are “an important part of ensuring longer-term stability in the market is to enable properties to be resold to families who can afford to purchase them.”
To search foreclosed homes for sale in your area right now click here.







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