Bank of America foreclosures on halt

With the unstable economy and lost jobs all over the U.S., home owners are feeling the crunch when pay cuts or unemployment make it difficult to keep up with mortgage payments. BofA is trying to work out a solution. According to The Los Angeles Times, this temporary pause in the foreclosure process could hurt the economy because home buyers could be concerned about buying foreclosure homes, and simultaneously also pause the rebuilding of the economy . On the other hand, however, USA Today points out that the halt can actually boost the economy in short term within the estimated six months of wait since there won't be low priced homes on the market yet, which means that the economy will have time to recover. After that, the economy would be stable enough or the new low-priced homes. The New York Times looks at a completely different angle by elaborating on the problems that would arise with title insurance, or lack there of, where owners of fore closed homes could claim the home rightfully theirs. Although this halt seems like a breath of air for people with potential foreclosed homes, it will simply put them in "home-owner limbo."

Homeowners line up outside the LA Convention center in hopes of finding an answer through loan modifications through the Neighborhood Assistance Corp. of America. (Irfan Khan, Los Angeles Times)

-Betty Villalobos 10/9/10