Backlog of Cases Gives a Reprieve on Foreclosures

[Derechos]

Millions of homeowners in distress are getting some unexpected breathing room — lots of it in some places.

In New York State, it would take lenders 62 years at their current pace, the longest time frame in the nation, to repossess the 213,000 houses now in severe default or foreclosure, according to calculations by LPS Applied Analytics, a prominent real estate data firm.

Clearing the pipeline in New Jersey, which like New York handles foreclosures through the courts, would take 49 years. In Florida, Massachusetts and Illinois, it would take a decade.

In the 27 states where the courts play no role in foreclosures, the pace is much more brisk — three years in California, two years in Nevada and Colorado — but the dynamic is the same: the foreclosure system is bogged down by the volume of cases, borrowers are fighting to keep their houses and many lenders seem to be in no hurry to add repossessed houses to their books.

“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?’ ” said Herb Blecher, an LPS senior vice president. “Now you’re probably not losing any sleep.”

http://www.nytimes.com/2011/06/19/business/19foreclosure.html?ref=us

[independentpiney]

1. Damn, I'm in NJ & I WANT them to foreclose on me. nt

[TBA]

2. My CO house is being sold as a short sale

but BofA wanted me to pay 3500.00 in closing.

My response? Fuck no. I will not pay one dime. Foreclose if you want to.

As my mama use to say ... You cannot get blood from a turnip.

[customerserviceguy]

3. Celebrate this if you wish

but all it does is drag out the time that foreclosure properties remain on the market, dragging down the prices of real estate that is being properly paid for. It also lengthens the recession, since we don't really come out of one until real estate prices hit rock bottom, and that's not going to happen until all the foreclosures are taken care of.

Yes, there are people who are going to live in houses for 'free' a lot longer than they would otherwise be able to, but the homeowners who are paying their mortgages will be paying the price for that.