What about those foreclosure numbers you keep hearing about?
April 11th, 2008 . by Mike KellyMAKING SENSE OF THE LATEST FORECLOSURE NUMBERS FOR CONSUMERS–This synopsis provided by the California Assoc. of Realtors
3.6 percent of borrowers were at least 90 days late on their payments in December – the highest percentage in more than five years, reported the Mortgage Bankers Association. Even so, it’s important to remember that 96.4 percent of borrowers were on time with their mortgage payments. And new foreclosures accounted for only 0.83 percent of all home mortgages in the fourth quarter of 2007, up from 0.54 percent in 2006.
Lenders took an average of 61 days to foreclose on a property last year, compared with only 37 days the prior year. State laws determine the length of time it takes for a bank to foreclose: For example, in Georgia, it’s as little as 30 days and 35 days in Nevada. In Maine, it takes up to a year while it can take as long as 19 months in New York. In California, it usually takes a minimum of 120 days to complete an uncontested judicial foreclosure, but the timeframe can be significantly increased, for example, if the borrower contests the action or files for bankruptcy, according to Foreclosure.com.
Banks sometimes let homeowners or renters stay put during a foreclosure to avoid legal fees and property maintenance and other costs, and to limit potential damage to the property that might occur if it was vacant for months on end. Banks also are slower to move on foreclosures because they are short-staffed and inundated with foreclosure paperwork.
