According to a recent report, Florida ranks among the top states nationally for the average length of time it takes for foreclosure proceedings to begin. For those homeowners who went into foreclosure in November, they typically had not made a mortgage payment in 10 months. Financial experts are flabbergasted by the 307 day delay between the first late payment and a foreclosure referral.
Here are some statistics for other states: In Maryland, a home doesn’t go into foreclosure until 358 days after the first late payment. In New York its 344 days, and California tops the list at 367 days.
The report also found that 18 percent of loans across the country with 24 or more delinquent payments are not in foreclosure. Further, about 15 percent of loans with 18 months of no payments are not in foreclosure. As a result, a very large pool of extremely delinquent loans exist.
Of course, delinquent homeowners benefit from these delays. However, homeowner associations certainly do not obtain any benefit because they are unable to collect fees. Also, neighbors of vacant properties must deal with the fact of reduced home values and property maintenance.
A reason for the delay is the federal government’s loan modification plan. The Making Home Affordable program helps homeowners obtain lower monthly payments. As we’ve discussed, the program has not been completely successful due to the amount of homeowners dropping out and the bureaucratic red tape.
Another reason for the lengthy delays is the fact that banks are unprepared to handle the millions of foreclosure cases as well as loan modifications. They also don’t have the staff or the talent needed to move these faster.
Today’s current real estate market, and ongoing foreclosure crises, presents all sorts of issues that must be properly navigated. There are many factors contributing to Florida’s nation leading delinquency rates. They include a weak job market, weak economic recovery, and a major drop in home prices. Consequently, Florida’s housing market remains unsettled in large part due to the continued foreclosure crises.
Our Miami foreclosure defense lawyers have assisted many homeowners in buying enough time to reach the solution that is right for them. There are many alternatives to foreclosure, and often times it just takes proper planning to properly navigate against the potential pitfalls. Help is often available to those who seek it.
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