Two days ago someone I trust said that GMAC and Chase were first but to expect the other big lenders to shut down foreclosures also. The only way I see these getting to court is through class action lawsuits and who knows what happens with those.
I did have a personal experience about a week ago when a property we were working on got foreclosed. Without getting into too much detail, it was clearly a lender mistake and the sale should have been postponed. Fortunately they overpriced it and no investor bought it so it went back to the beneficiary. We were just told they are going to unwind the the foreclosure and return the property to the seller.
The same person who told me that foreclosure moratoriums were coming at the other big lenders also told me he spoke with someone who was at a roundtable of high level execs from various major lenders and servicers. He was told they now beleive it could take as long as 10 years to get through this, that they will keep at it as they have been doing to work through all properties (what we refer to as shadow inventory) and that there will be no foreclosure tsunami.
My prediction for the RE is unchanged. We are in for a long period of stagnant/stable prices. No big ups or big downs.
