Lenders are delaying foreclosures in several states

4-28-2011: This delay in foreclosure action is expected to slow the foreclosure process on existing distressed homes, thereby prolonging the economic recovery and putting continued downward pressure on housing prices.

Basically, due to lack of thorough attorney review, Robo signatures, and lack of good accounting to track true ownership of properties that have been foreclosed, many lenders (including Wells Fargo, Bank of America, Chase, and others) have stopped the foreclosure process.  Some people have gone as far as suing the lender, even though they haven't made a payment in months or years.

In Florida, the average number of days it takes to foreclose is 573 (as opposed to 423 days in 2009).  Nationwide, the number of day is 478 (v. 361 in 2009).

The immediate results is mass confusion and delaying the inevitable.  If people could afford to pay the monthly payments, they would.  Since they can't pay, they face foreclosure from the lender who has ownership of the property a secured by the property (i.e., your lender who owns the mortgage note).  But what if the lender who is collecting your mortgage payment doesn't own the mortgage note?
Another result in delaying the inevitable foreclosure process will be to slow down the rate of foreclosure sales.  Once the vast majority of foreclosures are sold,  home prices should become stabilized and have room to grow.  To keep the stream of foreclosures steady, through these delays, then the "cleansing" process never has a chance to eliminate the backlog of foreclosures and falling home prices.

http://www.examiner.com/real-estate-in-st-petersburg/the-latest-action-and-inaction-on-foreclosure-fraud

http://www.examiner.com/real-estate-in-st-petersburg/real-estate-investors-beware

http://www.examiner.com/real-estate-in-st-petersburg/real-estate-investors-beware

10-6-10:  I saw in today's WSJ that the loan servicing arms of the major lenders are holding up foreclosures - which doesn't make sense for the servicer since they need to continue to send payments to investors - unless there's good reason - that makes no sense now unless someone is challenging the legitimacy of ownership and threatens a lawsuit.


References to products and services are not a specific endorsement, but the user must perform their due diligence and investigate whether the product or service is right for them. I welcome any or all comments that would help others.