According to RealtyTrac, the average amount of time that it currently takes in the state of New York to complete the foreclosure process is 986 days. This time period, which is nearly three years, is the longest of any state in the country and a record high for New York[1]. New Jersey trailed close behind with an average of 974 days and Florida logged in at third-longest with 749 days. Texas, on the other hand, still is foreclosing, on average, in less than three months with an average foreclosure timeline of 86 days.
While prolonged foreclosure timelines may be a welcome respite for homeowners struggling to make their mortgage payments, chairman and CEO of RealtyTrac Jim Saccacio warns that ultimately the delay in foreclosures delays the end of the foreclosure crisis[2]. He points out that the longer the crisis continues, the lower home values are likely to fall and the farther underwater home values will plummet. In fact, the declining equity trend will simply exacerbate negotiations between homeowners and banks, he says, creating a cyclic problem that will extend the housing recovery period indefinitely.
Do you agree that delays in foreclosures ultimately just prolong the pain, or do you think that if the timelines get long enough, banks may see benefit to modifying loans or reaching other settlements with struggling property owners?
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[1] http://nationalmortgageprofessional.com/news26916/new-york-properties-take-over-three-years-foreclose-upon
[2] http://www.forbes.com/sites/jimsaccacio/2011/10/07/twin-threat-foreclosure-cycle-doubles-default-amount-increasing/
I believe Banks are cry babies they are only ones causing moral hazarad. Banks make money on the risk they take not on interest. That is what thet told pope about 400 years ago. Before that lending money for profit was illegal. So Bankers came out they where making commission on the risk they where taking.
If banks worked with people when there 2/28 and 3/27 came do allot this would not had happen. Instead they wanted rates pop from 5 to 9 or 11 rate almost over night. They made loans figuring they could enslave people on the high payment.
One thing people forget as baby boomers die out real prices have to fall rule of supply and demand.
just adjust veryones payment and get cash flow moving. Or follow the Tora all loans on items that God created loans are cancealed at 15 years hence the 15 year mortgage.
so anyone interst only Libor adj 50 year loan…
Everything get well just reduce 1o2 % on rat people who are current on there loans no need to do refi cost money to do. Few strokes on keybroad next money economy starts moving.
Fix is easy problems gods at wall street don’t like it. Cheers
Simple math.
The longer a potential asset is unproductive the more is costs the owner, the lender and the whole community.
Your information is very helpful
Oh boy! I could write a book on my experience with foreclosure! I JUST got my HAMP trial loan mod. Yippie! I get to keep my home for at least 3 more months, paying one-third the payment I paid previously! That is great! I have not paid a mortgage payment in 5 years! That is good also. My bank first tried to foreclose illegally by NOT delivering the summons to my correct address. They put me on the foreclosure fast track, but I got a lawyer to throw the judgment out. Indiana is a “judicial state” and that has bearing on how long foreclosures will take. Its state by state. Let me say the frigging banks got their bail outs, the homeowners got zip! I worked in the mortgage and real estate industry. Everything having to do with the housing industry went bust in a short period of time. I also worked in the building trades and that is also dead unless you want to work for Mexican wages and live 3 and 4 families to a home. I ditto what others have said, there is NO motivation for the banks to give loan mods; they think they can make more money foreclosing and throwing people out of their homes. So what! The banks do not consider the huge social problems that have been the result of massive foreclosures….and it is not over yet. As millions of Americans continue to lose jobs and out government is clueless as to how to encourage or create real jobs, not more government jobs. The real estate bubble burst; i guess the next bubble to burst is the “government bubble”. I did short sales for a while, but decided to go to law school and become a bankruptcy attorney! No shortage of work there, HA! We haven’t seen the bottom of the real estate market yet. You have to have a job to get a mortgage! There are tremendous deals out there on all kinds of houses in all price ranges, but who are you going to flip them to? I have noticed a lot of foreign investors are paying cash for foreclosed homes. Also, how do foreign banks, namely, Suisse Bank and Duetche Bank (sorry about the spelling) get to be trustees of massive trusts that supposedly are the “holders in due course” of millions of mortgages in foreclosure or those that have been in foreclosure? No one has an answer. Anybody out there know? Are they creating more massive credit default swaps?
Here’s a possible solution for dealing with the banks (but everyone needs to do their share):
When you get a foreclosure notice or Complaint and Summons from the bank (who in something like 92% of cases sold your loan within 90 days of the day it was finalized and today is only a “loan servicer” yet acts like a property owner,thus foreclosing on you illegally), here is what you do:
YOU FILE A COUNTER-SUIT FOR QUIET TITLE TO THE PROPERTY.
(Yeah, I know you will probably have to spend $3000 on a lawyer, but if you win you get the house for free and NO MORTGAGE – and you probably have some of the money you stopped paying to the lender, that you can use to pay for this).
If every home owner in foreclosure did this, the banks would come around VERY QUICKLY and start making deals or they would be sued out of business by homeowners. They know they cannot prove “standing” when their pants are pulled down in court; they just count on not being called to do so very often because most homeowners don’t fight back. Start fighting back en masse and the banks will smell the coffee quickly.
My prediction from decades of research is, very soon we all will not need money
to do anything. Society will work better than ever without any money whatsoever.
Mark my word.
I always got my mortgages privately from investors, never used banks, i have ut-
most aversions to banks all my life. I will never dance to their whistles.