Long Foreclosure Delays In The Forecast
January 19th, 2011
The ForeclosureGate fallout continues in many states that were not even affected by the initial foreclosure moratoria back in October of 2010 as procedural issues continue to plague lenders[1]. A new report from Barclays Capital indicates that the length of the foreclosure process is going to climb all over the country thanks to the robo-signer scandal as the rate of foreclosure drops dramatically across the country. Currently, foreclosures are taking 57 percent longer in states that enforce a judicial foreclosure process and 47 percent in non-judicial foreclosure states. However, in individual states, the numbers range from 91 percent slower (New York) to 35 percent slower (California).
Many states are also taking steps to deliberately slow the foreclosure process. In the wake of a recent ruling by the Massachusetts Supreme Judicial Court that reversed two foreclosures due to a common process known as “endorsement in blank” which lets lenders buy and sell mortgages quickly without actually taking official ownership – and, as it turns out, prevents them from legitimately foreclosing as far as Massachusetts is concerned. Other states are also concerned that lenders do not even have all the information – or legitimate ownership – of notes on properties on which they are foreclosing. States like Virginia are hoping to stall “drive-by foreclosures” by expanding required notice for foreclosure and requiring additional review steps in the process[2].
Do you think that the time frame of the foreclosure process should be extended?
Thank you for reading! Your comments and questions are welcomed below.
[1] http://shortsaledailynews.com/extremely-long-foreclosure-delays-not-just-for-judicial-states/
[2] http://www.newsleader.com/article/20110118/NEWS01/110117010/General-Assembly-will-consider-bills-to-slow-foreclosure-process
January 20th, 2011 at 10:13 AM
Who cares if it slows it down. Justice is usually slow. The banks, ie Chase and B of A etc, want it fast. That way they - the servicer, not the owner or the investor win. Read about where the money goes in a foreclosure - it is the servicer, like Chase that makes the $$$$$$. They do not want to modify.
Every state should be a judicial state on homes. They should also include home loans in bankruptcy, just like they do commercial loans. Every homeowner in foreclosure should be represented by an attorney. Too many homes are stole by the likes of Jamie Dimon at Chase, simply because most foreclosure go unchallenged.
The OCC and the Fed have been asleep, most likely in beds in a resort paid for by the banks. Probably tired from a day of golf with banks and lobbyists.
January 21st, 2011 at 6:18 AM
The main stream media calls it the robo signer problem, but thats just their gentleness to the real problem of these banks are being drug into court and their a**es handed to them in court. Don’t walk away from your home. Fight the banks and Wall Street! They have screwed the American people long enough and need to pay.
January 21st, 2011 at 7:24 AM
To be honest the process is already dragging out too long. So far the reports I have seen have shown that although there may have processing errors (and even then, not that often) the foreclosure itself was warranted as the borrower has not been repaying the loan for months, many months.
And ultimately who is going to pick up the tab? We are.
Hopefully some common sense will prevail in the courts.
January 21st, 2011 at 10:07 AM
Feel like the banks should be able to foreclose as fast or slow as they choose, without doing anything illegal during the process…..AS LONG AS…..they clearly provide full docs showing they have proper and undeniable ownership to the property in question!!! Like most investors should feel “if its mine let me do what I please”.