Until now, foreclosed homes have offered buyers an inexpensive entry into the housing market. But the recent foreclosure freeze announced by several big lenders makes pending deals in all 50 states far more tenuous.
Four big lenders have already temporarily suspended home foreclosures to respond to a slew of complaints about inappropriate foreclosure processes. Now, up to 40 state attorneys general are expected to announce an investigation into mortgage-servicing firms that are accused of submitting incorrect foreclosure filings. During the freeze, lenders will try to sort out whether homes were appropriately foreclosed, and if not, whether the ostensible homeowner -- or yet another lender -- can make a claim on the property.
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