Foreclosures Backlog Gives Breathing Room To Home Owners

by San Antonio Attorney

Countless home owners in hardship are getting a lot of breathing room due to the foreclosures backlog.

With the mortgage lenders existing pace, it will likely take them 62 years to repossess 213,000 homes in the State of New York. This is according to the LPS Applied Analytics calculations.

In New Jersey, which also handles foreclosures through the courts just like New York, it could take up to 49 years. In Illinois, Massachusetts, and Florida, it will take 10 years.

In states where a foreclosure does not have to go through a court, the pace is a lot faster. For instance, in Colorado and Nevada it will only take 2 years. However, the situation is similar: the volume of cases has stalled the foreclosure process. Lenders are no longer in a rush to repossess homes and debtors are struggling to keep their homes.

When large banking institutions confirmed last year that they were illegally handling foreclosures by filing falsified documents, the banks said that whatever halts in foreclosures and evictions will be quick. All the leading servicers decided to initiate reforms in their procedures of foreclosure. In April, regulators have given the banks two months to draft a plan to accomplish it.

But there is still no development. When the deadline came a week ago, it had been extended for another 30 days.

LPS said that new eviction and foreclosure filings are down across the country by almost one-third beginning last fall. Since September, the filing of foreclosures in New York is down 85%, based on the New York State Unified Court System.

Before the court documentation problems came out in September, about 1,500 houses in New York were foreclosed. Over the past 6 months, the average in New York is only 286, according to LPS. It is by far the lowest since the start of recession.

If you are having trouble with your mortgage contact a San Antonio Attorney for help.

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