Here are three updates regarding foreclosures in Texas. For background, please read the blog post from several days ago.
Bank of America has announced today that they are halting all of their foreclosures across the country while they investigate the robosigner situation. From their press release: ““Bank of America has extended our review of foreclosure documents to all fifty states. We will stop foreclosure sales until our assessment has been satisfactorily completed. Our ongoing assessment shows the basis for our past foreclosure decisions is accurate.”
In terms of the Texas situation, there are still a lot of questions. One of the big ones right now revolved around title insurance. Many title companies have not yet taken a stance on whether or not they will insure title for foreclosure properties in light of the attorney general’s action. From my title sources I have learned that Old Republic has decided they will not issue title on foreclosure properties until the current situation has been resolved. Independence Title, however, will insure these properties. The other companies are still weighing their options. So even if banks continue to foreclose, they will have to find a title company to insure the sale. In addition, many of these title companies are considering not insuring properties that were foreclosures within the past year. That means that if someone bought a foreclosure within the past year and is selling it now, they would not be able to insure it through a title company that has opted to avoid these properties.
According to George Roddy, Sr. with Foreclosure Listing Service, Inc., (a service to which I subscribe), foreclosure filings in Texas are running comprable to last month. We’ll get a better take on it by Wednesday because Tuesday is the deadline to post foreclosure notices for the November 2 auctions. However, just because a lender files for foreclosure doesn’t mean they will send it off to the sale.