Foreclosures Slow as “Banks Face Backlogs”

Nationwide, new foreclosure cases and repossessions have dropped by a third since last fall as banks, as greater scrutiny over banks’ foreclosure procedures and more home owners fighting back in court has slowed the pace. Banks, already facing huge backlogs of foreclosures they’ve already repossessed, also may be reluctant to add on more to their inventory, experts say.

States where courts must review each foreclosure tend to have the longest delays. But in the 27 states without that requirement, foreclosures are much quicker. For example, as comparison, in California, the foreclosure backlog is three years, and in Nevada and Colorado, it’s two years.

“If you were in foreclosure four years ago, you were biting your nails, asking yourself, ‘When is the sheriff going to show up and put me on the street?’” Herb Blecher, an LPS senior vice president, told The New York Times. “Now you’re probably not losing any sleep.”

Full article at source: “Backlog of Foreclosures Giving Some a Reprieve,” The New York Times (June 19, 2011)

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4 thoughts on “Foreclosures Slow as “Banks Face Backlogs””

  1. From a report issued yesterday by ForeclosureRadar We expected a significant increase in auction sales based on previous default patterns said Sean OToole founder of ForeclosureRadar. It is time for lenders to accept this reality and start approving short sales rather than forcing more thantwo-thirds of troubled homeowners through the entire foreclosure process.

  2. Bud Zeller

    I saw that report. Your right, lenders need to start working with homeowners, Bud

  3. What a mess of a housing market this has turned out to be! Thanks for posting this, I’m bookmarking it for future needs!

  4. Bud Zeller

    How true, that is why we try to keep the public informed!

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