nyone understand the foreclosure business?

[napi21]

I just heard TWICE that thre are several thousand homes around the US that are way beind in their mtg. pmts. but it will take 4 years to get them Into foreclosure. O thought I knew how this mess worked, but for the life of me I ca't imagine a scenario that woud take that long! Sorry, I heard the news broadcast at the top of the hour & again at the bottom of the hour. I purposefully listened twice to make sure I had really heard what they said. What in the world culd possibly take 4 years?

[flvegan]

1. The judicial process is overwhelmed.

Taking 4 years is a bit of a stretch, short of Affirmative Defenses. Many of the banks are wising up and trying to work with homeowners. That's a good thing for all parties involved.

In Florida, a well-versed individual could hang up a foreclosure for 5 or 6 years easily if they tried pretty hard.

[ArcticFox]

2. I've got some ideas

First, I'm pretty sure its more than a few thousand.

The more homes the banks put through foreclosure, the more apparent it will become that the market has a long way down to go. The more difficult it will be for the banks to offload the houses they already have on their books. The more they might have to mark down the value of their inventory.

Also, it just may be that there are so many foreclosures in process that courts are overloaded, there are too few lawyers to handle them all, etc.

Check out http://www.doctorhousingbubble.com/; there are some very informative stats on there.

[dkf]

3. I heard 2 years.

[napi21]

4. I don'tknow, but they said 4 years on KPOJ in Portland, Oregon. nt

[dkf]

6. 4 years free rent is a pretty damned good deal.

[melm00se]

5. with banks

fearful of getting caught doing robo-signng, the court demanding paperwork AND the fact that they already have huge inventories that they can't sell (if they dump them onto the market, prices are depressed, creating more underwater properties/mortgages, creating more foreclosures - a vicious cycle) are all influencing banks on the foreclosure decision.