The number of foreclosed and repo houses for sale has remained high in the state of Washington. In an effort to prevent the number of distressed properties from increasing further in the region, the state has recently signed into law a measure that will reportedly aid troubled homeowners in avoiding foreclosures.
According to a number of housing market observers, a considerable percentage of Seattle repo homes for sale and foreclosures in various areas of the state ended as such due to lack of efforts to pursue mediation between banks and borrowers. The recent law, called the Foreclosure Fairness Act, aims to address this shortcoming by providing troubled borrowers with a chance to mediate with their mortgage servicers or banks.
Under the regulation, homeowners can avoid losing their homes to foreclosures or Washington repossessed properties listings by seeking mortgage modification with the help of lawyers or housing counselors. The state of Washington is only the third region in the U.S. to adopt a program for foreclosure mediation. The states of Maryland and Nevada already have a similar program in place. According to local market analysts, the mediation law came at the right time since the state is currently facing escalating levels of foreclosure problems.
During the first three months of 2011, repo houses for sale totaled over 5,600 in Washington State, while over 7,000 properties are headed to foreclosed property auctions. The number of households who are currently at risk of falling into foreclosure is estimated to be around 30,000. The region is ranked 10th among all U.S. states in terms of areas with the highest rates of foreclosure during the 2011 first quarter.
With distressed commercial properties and residential foreclosures projected to rise again this year, housing market observers agree that the recent law will go a long way towards controlling the flood of foreclosures entering the market. The measure requires mortgage servicers to notify homeowners of their delinquency once they start falling behind on payments, something that analysts believe will encourage negotiation between the two parties and could lead to finding alternatives to foreclosures.
The law also stated that homeowners who answered the notice will be provided with two more months before a default notice is filed on their properties. The latest regulation also gives homeowners the right to seek help from courts to stop foreclosures if the service firm failed to act in good faith. Analysts are hoping that the latest effort will lead to fewer foreclosures and repo houses for sale in the region.
Mediation Aims to Reduce Foreclosed and Repo Houses for Sale Numbers is a post from: Foreclosure Homes Investing