Freddie Mac: Delinquent Borrowers Staying in Homes Longer
Freddie Mac, which, along with Fannie Mae finances about half of all U.S. mortgages, says that homes now take as long as eight months to work their way through the foreclosure process, The Financial Times reported.
Freddie Mac has to evict these borrowers before it can put the home on the market.
The glut in delinquent borrowers is one factor in the foreclosure slowdown. Another is the controversy about documentation, with evidence that major lenders including Bank of America Corp. (BAC) used potentially suspect paperwork to foreclose on homes.