Distressed homeowners in New York, New Jersey, and Connecticut are still feeling the devastating effects of Superstorm Sandy, particularly those who were already facing foreclosure prior to the disaster. Despite relief efforts, the ripple effect is likely to include increased delays in foreclosure activity and another significant setback in the nationwide housing recovery.
Fannie Mae and Freddie Mac have postponed foreclosure activities against defaulters within the designated disaster areas, and all related foreclosure auctions and evictions have been postponed for 90 days. Lenders tasked with processing the backlog of foreclosures in these hard-hit states had begun making progress prior to Sandy, but those efforts have been derailed by the storm, according to data from RealtyTrac.
What’s happening in these hardest hit states is not necessarily indicative of nationwide trends, which show that bank repossessions have continued to decrease across the board, and foreclosure activity across the country is down 19 percent from this same time in 2011.
Moving forward, Notaries will continue to aid in the nationwide housing recovery efforts by correcting the errors made during the robo-signing crisis and diligently ensuring accurate and efficient notarizations.