A new wave of foreclosures is about to hit the housing market and it could well be greater than the surge of recent years, according to a report issued by the Center for Responsible Lending.
The report found that 2.7 million households have already lost their homes and that another 3.6 million are seriously delinquent and at risk of foreclosure. The actual numbers could be higher because the report only looked at loans made between 2004 and 2008.
The report is supported by data from other industry sources, which have noted an uptick in foreclosure activity after a nearly year-long slowdown brought on by the “robo-signing” scandal.
While the foreclosure crisis has pushed millions of properties into the housing market — suppressing home prices and causing uncertainty — the situation could potentially help Notaries working in the field. Banks and government agencies are looking at ways to clear out the backlog of housing inventory as quickly as possible, which would generate activity in all facets of the industry. The federal government, for example, is considering plans to try to sell off homes repossessed by Fannie Mae and Freddie Mac in bulk to investors.
Notaries will have to pay special attention to performing their duties correctly as the entire mortgage and real estate process has come under unprecedented scrutiny. Notaries who make sure they have the propertraining will have a competitive advantage when carrying out assignments and will be better able to protect themselves from liability.
That is especially true of Notaries working with companies involved in the foreclosure process. Government regulators and law enforcement officials arecracking down on the improper practices exposed by the “robo-signing” scandal and holding Notaries and their supervisors accountable for those practices.