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Report Shows One Million Foreclosures To Be Delayed Until 2012

A new report from RealtyTrac suggests that around one million foreclosure notices expected to be filed by mortgage lenders in 2011 will be delayed until the following year – a boon for homeowners who will gain extra time to catch up with their mortgage repayments and avoid losing their homes.

 

One million foreclosure delays expected this year, warns RealtyTrac. Image courtesy of Foreclosure King Manaz

However, it might not be good news for everyone, with industry observers warning that real estate markets across the nation could be plagued by this looming shadow of foreclosure delays for much longer than previously expected.

As RealtyTrac’s vice president Rick Sharga explains, “It’s looking like the best-case scenario will be that we reach normal foreclosure levels sometime around 2015, so that means any recovery is set to be delayed for at least one more year than forecast.”

The number of repossessions by mortgage lenders this year (from Jan. to June) has decreased by around 30% compared to the previous year, the report explains. However, delays with foreclosure processing (lenders are taking far longer to foreclose on delinquent borrowers) are also put a skid on any housing recovery, say observers.

In the first six months of 2011, there were around 1.2 million foreclosure notices served – which amounts to a rather mind-boggling one out of every 111 homes in the US being served a notice.

RealtyTrac also reported that Nevada continues to be the worst affected state, with one out of every 21 homes moving into the foreclosure process.

 

Texas currently has the fastest foreclosure process in the US, just 92 days on average. Image courtesy of Alex Shay

The average length of time for foreclosures to process has also increased, says RealtyTrac. Figures from the second quarter show that the average home going through foreclosure tool 318 days to be repossessed, from the day the notice was first served. This is a 20 day increase on the first quarter’s average of 298 days.

The state of Texas currently has the shortest foreclosure periods, with the process averaging just 92 days, while New York has by far the longest process, at 966 days.

 

Mike Wheatley

Mike Wheatley is the senior editor at Realty Biz News. Got a real estate related news article you wish to share, contact Mike at mike@realtybiznews.com.

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