Can a court case really threaten the real estate recovery in Pa.?Jeff Geoghan
A recent post of his began “A recent Pennsylvania Superior Court case threatens to put a halt to the sale of bank owned and other properties purchased at a sheriff sale. In Beneficial Consumer Discount Company v. Pamela Vukman 2012 WL 258674 (PA Superior Ct. 2012), the Court ruled that Act 91 Notice provided within the foreclosure process was improper and the sale was overturned. A request for an en banc panel of 9 judges to review the decision is pending. If the Court approves the request, the decision will be set aside.” The case turns on whether the Act 91 foreclosure notice used in Pennsylvania is deficient. If so, it could put a halt on the foreclosure process statewide until resolved.
I asked him about it.
“It’s a possibly over-the-top headline, but in reality, should such a halt to the sheriff sale process occur, there exists the possibility of a significant disruption of the overall real estate market,” Zulli said. Apparently Fannie and Freddie are reviewing the case to determine whether to pull these properties off the market.
Looking at this from a real estate agent’s perspective, I have to agree with Zulli. A variation of this issue has arisen in other states in the recent past (remember the “robosigners”?). In some cases, title underwriters refused to insure the questionable transactions that blunted the mortgage process and overall created a mess. Here in Pennsylvania, title underwriters are closely watching developments of this court case — an ominous sign.
Click here to read Brian’s article.
What do you think? Bank-owned home sales currently make up 15 to 20 percent of all residential home sales, per industry estimates.
Jeff Geoghan is vice president of marketing and communications for Coldwell Banker Select Professionals and Select Services, based in Lancaster City, with 10 offices in eight Central Pennsylvania counties. Jeff lives in East Petersburg where he also serves as mayor. Jeff has been actively involved in local government and business and has been used as a source by local, regional and national publications.