Foreclosure Backlog Worse Than Ever
It takes much longer to process home foreclosures than it used to.
In May, according to the real estate data firm RealtyTrac, one in every 605 homes in America received a foreclosure filing. That's 214,927 foreclosures.
This is a 33 percent drop from the previous May, and it represents a 42-month low overall. But RealtyTrac senior vice president Rick Sharga says the number should be much higher.
"There's about 4 million seriously delinquent borrowers out there, many of whom would already be in foreclosure except for processing delays," Sharga said in June.It's a point Sharga, and others, have made elsewhere. Nationwide, the average processing time has more than doubled to about 400 days since 2007, The Washington Post reports this week. In many states, it's tripled.
There are a number of factors contributing to the foreclosure drag. Last fall, many banks paused the entire filing process while they tried to get on top of the robo-signing scandal.
The systemic nature of the robo-signing problem led homeowners and judges to begin looking at subsequent foreclosure cases much more carefully -- which added to the delays. Mediation programs, in use from Nevada to Pennsylvania, are making it easier for some people to keep their homes, but also contribute to the processing bottleneck.
For the full story, visit Huffington Post.
For more on foreclosures and related topics, see these AOL Real Estate guides:
- How to Buy Foreclosures
- Spot Foreclosure Scammers Before They Spot You
- Foreclosure: What it Means for Renters
- Foreclosure Help: What a Housing Counselor Can Do
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