Posted on 10/16/2015 6:36:46 AM PDT by SeekAndFind
New foreclosures may be back to nearly normal, but the mess from the epic housing disaster in the last decade is far from gone. Bank repossessions, the final stage of the foreclosure process, jumped 66 percent year over year in the third quarter of this year, according to RealtyTrac, a foreclosure sales and analytics company. It's the largest annual rise ever recorded in bank repossessions by RealtyTrac. More than 123,000 homes went back to the bank in just three months.
"In states such as New Jersey, Massachusetts and New York, a flood of deferred distress from the last housing crisis is finally spilling over the legislative and legal dams that have held back some foreclosure activity for years," said Daren Blomquist, vice president at RealtyTrac. "That deferred distress often represents properties with deferred maintenance that will sell at more deeply discounted prices, creating a drag on overall home values."
New York and New Jersey have the longest foreclosure timelines in the nation. In both states, foreclosures can take well more than three years. New Jersey has a formidable judicial process, as well as a strong voice in nonprofit housing activists working with distressed homeowners. Those combined to keep the foreclosure process at a snail's pace, until now.
Banks have finally reached a point where they can push foreclosures forward, having streamlined all the extra paces required by laws and court rulings. "Additionally, more nonbank lenders who purchased nonperforming loans over the past couple years are moving forward with foreclosure, having passed the foreclosure moratorium of six to 12 months required by many of these purchase agreements," said Blomquist.
(Excerpt) Read more at cnbc.com ...
Talked to a realtor yesterday who said foreclosures are ramping up significantly.
What state are you in?
Mm-hm... was just a matter of time...
Tejas
Tejas
I would imagine they will be going up a lot in Texas with the oil and gas business being hit so hard.
The oil and gas business was one of the few things we had going for us under Obama’s incompetence. He fumbled that one too.
Anyone who has lived in a house for 4 - 6 years without paying a mortgage, or taxes, or insurance on it ought to have a really nice nest egg for moving and starting over.
If they played it right, and kept the house well maintained, a homeowner could have gone the HAMP route, and started fresh, by recapitalizing back taxes and insurance. Loan servicers push for recapitalizing missed payments, but that's not a requirement.
I saw some really sweet deals go down during the bank crisis. My coworkers and I remarked constantly that we wish we could have availed ourselves of the programs, in addition to the "nest egg" from not paying a monthly mortgage payment for 3+ years.
You have to stand your ground with these mortgage servicing companies. We constantly had battles over the way they were dealing with delinquent homeowners. It got to the point where they were stripped of the vast majority of their delegated authority.
The more likely course of action is that they trash the place on the way out, spend on consumables the money they could have saved to move, and are in pretty bad shape when they finally get evicted. (Count yourself lucky if the copper plumbing and wiring hasn’t been ripped out of the walls, and concrete poured down the toilets.)
It ought to be an unsafe and unsound banking practice to make mortgage loans in some of those states.
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