A moratorium on foreclosures could jeopardize many first-time and move-up homebuyers who hoped to purchase a foreclosed property, the National Association of Realtors (NAR) said.

A prolonged review process on foreclosures would have a damaging impact on many communities and hinder the nation’s economic recovery, according to NAR.

"As the leading advocate for homeownership issues, we understand that many lenders need a time-out to review their actions to ensure that homeowners are not improperly foreclosed on and that the lenders are following regulations and state laws," said NAR President Vicki Cox Golder, owner of Vicki L. Cox & Assoc. in Tucson, Ariz. "After that, the foreclosure process must resume quickly to return stability to families, the housing market and the economy."

Requirements for foreclosure vary by state, and practices to meet these requirements vary by firm, which NAR believes will only make the foreclosure moratorium more complicated.

"There are valid foreclosures that should move ahead quickly, and we shouldn’t lump them in with mortgages that are suspect," said Golder. "That would cause deep problems in an already fragile market and throw many [consumers] into uncertainty."