Posted on 10/09/2011 1:12:37 PM PDT by Borough Park
NEW YORK (CNNMoney) -- As the foreclosure backlog continues to build up, delinquent borrowers are spending even more time in their homes without making mortgage payments.
Once borrowers start missing payments, they spend an average of a year and nine months, or 611 days, in foreclosure before banks repossess their homes, according to LPS Mortgage Monitor. That's more than twice as long as three years ago, when the average was 251 days. Earlier his year, the average was 523 days.
"The number of defaults in the pipeline has been huge and we had more problem loans than ever before," said Herb Belcher, who supervises analytics for Lender Processing Services (LPS), which provides mortgage industry information and analytics to big banks.
With so many bad loans, servicers have had to prioritize which ones they can deal with and which ones to push aside.
Squatter nation: five years with no mortgage payment
(Excerpt) Read more at money.cnn.com ...
Gee maybe people need jobs and not another round of meager unemployment checks.
Not quite sure what you mean here. Are you saying that companies are not foreclosing because they don’t want to take the accounting loss?
Anyone who thinks that housing has ANY CHANCE of recovery is sadly mistaken at this point. We have YEARS TO GO here.
The next ‘Trumps’ are being made right now.
“The next ‘Trumps’ are being made right now.”
LOL. I hear you guys on the radio...right up the crash, and now for 5 years after. Seems EVERYONE can get rich on housing. LOL.
I’m not what “you guys” you are talking about. You clearly tried to insult me with your comment but failed. Buy low sell high has nothing to do with you, get over it.
“I’m not what “you guys” you are talking about. You clearly tried to insult me with your comment but failed. Buy low sell high has nothing to do with you, get over it.”
Spare me. It doesn’t matter, I have bigger things to work on.
yah....consider a home that was built contractor-spec in the mid-80’s. It had state of the art R-19 insulation all around, aluminum framed single paned glass windows and cheap heating and cooling costs at the time.
Consider that the house has probably changed hands several times, and/or been refinanced repeatedly in order to tap the “equity” to use for trips to Disneyland, braces for the kids, a new boat, personal watercraft, breast implants....you name it, the money received during those refinances was received and spent on just about anything you can imagine except an effective remodel. Many people “remodeled”, but installing a $50,000 kitchen in a (formerly) $100,000 house does not necessarily add that much value to the house, no matter who wanted to loan money on it.
Now these houses all need new windows, complete new heat and a/c systems, hot water heaters, plumbing fixtures, painting, carpeting (including new padding), paint inside and out, a new roof, upgraded insulation.....the list is extensive and expensive. But here is a bank holding a $300,000 mortgage on a house that might be work $100,000 as is, once you get the squatters out, and if they don’t trash the place before you can get them out.
In addition many States and localities stood silent as the mortgage bubble inflated around them, because the higher those property values went, the more property taxes the States, Counties and Cities all collected. With all of that cash coming in it was not hard to expand local and state government and that is exactly what happened. Now that property values are crashing, so are those very same Cities, Counties and States who have seen their revenue sources evaporate before their eyes.
Let’s not forget that when these “strategic defaulters” stop making mortgage payments, they also stop making insurance and tax payments that were formerly collected in their escrow accounts and paid out on a regular basis. Not only are they bogueing on the payments to the bank and living in a house they have no real claim to, they are continuing to live in a locality and depend on services that they are contributing nothing towards; like police, fire, street repair, street lights, etc, etc, &c, &c....
In fact many of these houses really are sub-standard and really are not worth much if you consider the repairs and upgrades they need before anyone would be willing to buy them.
What a mess.
If more people fought the banks this would end ,, 3 or 4% doesn’t do it ... read this deposition , it gets especially interesting beginning with pages 13 and 14 where clear violations of the PSA regarding the ACTUAL LOAN DOCS NEVER BEING IN THE CUSTODY OF THE TRUSTEE is just a “matter of fact” ho-hum type of thing ... and this is THE MAN at Wells Fargo ,, all foreclosure doc handling goes through his hands ...
http://www.scribd.com/doc/47319955/Full-Deposition-of-Wells-Fargo-John-Herman-Kennerty
OOPS !! kids interrupted and I forgot to put the link...
You convinced me, you have no idea what you are talking about.
what happens..is that municipalities TRY not to foreclose...drops all the other housing values...which then drops the property tax revenues...which then drops the values of the municipal bonds...etc.etc.etc...
The stalling on foreclosures keeps your property taxes high to fund your local government employees, so they can be paid to watch “rich” (middle class) folks more closely and be politically active enough to find ways to hike other taxes. They need the time that your tax dollars provide in order to reelect Democrats.
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