It's all over the media, the foreclosure freeze that could become a moratorium. Banks have been supposedly caught doing illegal acts to more quickly take the homes from their owners and Attorney Generals filing lawsuits right and left against lenders to prevent foreclosures. You've read it, viewed it or heard it didn't you?
What does the foreclosure freeze do? First of all, it allows homeowners who had already stopped paying their mortgage, a few more months of rent-free living. I'm talking about those folks that got the NOD (Notice of Deficiency) from their lender after missing 2, 3 or more monthly payments (in some cases more than a year of missed payments) and they made a decision to stay in the home until evicted or move before it.
This is good for these folks. They can save money by living rent-free for as long as possible. I hope they are really putting this money away and not wasting it. They will need it because getting credit for anything for the next 7 years will almost be impossible.
I'm not going to judge anybody although some are 100% at fault for their plight. Others just lost their jobs and have not been able to find another with the same pay. Some were too optimistic about their future earning potential and bought a house they could not really afford. And now they all are in foreclosure proceedings and about to lose their homes.
I think I've gone long enough for this initial post. In my next post I will continue with my thoughts about this mess and the downside for other that are directly affected by this freeze.
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