Homeowners that have been threatened with foreclosure were given the gift of time last week when Bank of America, GMAC Home Mortgage, Inc., and JPMorgan Chase put a halt on thousands of foreclosure proceedings in 23 states across the nation. The suspended foreclosures were due to amount faulty documents that were signed without the proper authorization.

The delays in foreclosures could have an enormous effect on the real estate market. The amount of foreclosure filings has been gradually diminishing while still keeping the home prices down, this could change with the foreclosure stall by creating a backlog, some analysts say. However, according to Charlie Green, Clerk of Courts in Lee County Florida, I dont think itll be much of a backlog. I think itll just prolong the agony of the people going through it.

Green went on to say, I think some people will start trying to do this (contest foreclosure proceedings) to save their house and I dont know if thats going to work. I hope it doesnt create a huge amount of false hope.