Recent ruling could help foreclosed homeowners
Since the end of a number of federal and state investigations into the way banks contributed to the foreclosure crisis, some consumers, who had previously been evicted from their homes, are receiving court rulings that allow them to return to their properties.
In the past week, the Massachusetts Supreme Court ruled that U.S. Bancorp and Wells Fargo failed to prove they owned the mortgages of many foreclosed homes.
As a result, the foreclosure process could be slowed down in many states, a trend some argue would boost the economy, The New York Times reports. Real estate experts say fewer foreclosures would raise home prices and strengthen the housing market. In addition, this trend could lead to many lenders opting to modify existing loans, rather than risk an improper foreclosure.
“Anything that buys time, that reduces the supply of houses coming onto the market, is helpful,” Karl Guntermann, a professor of real estate finance at Arizona State University, told the news source.
Some of these consumers were even allowed to return to their homes, and, as a result of time spent away from mortgage and credit card payments, may be in a better financial position to than they were previously.