More Foreclosure Delays: Slowly Peeling Away The Band-Aid

house reposessed.jpg

At this rate the pain of the current housing crisis is never going to end. RealtyTrac just came out with their April Foreclosure Market Report and on a national basis foreclosure activity reached a 40 month low as a result of "massive delays" in the foreclosure process, NOT because of any improvement in the housing market. Apparently the delays are at least partly due to the banks having to work through their documentation problems. Here are a few highlights from the press release:

 

  • Loans that are more than 90 days delinquent are no longer automatically going "into foreclosure but are waiting longer to allow for loan modifications, short sales and possibly other disposition alternatives."
  • Once a loan moves into the foreclosure process it's taking longer to complete the process.
  • The total foreclosure timeline has steadily worsened - from 151 days in the first quarter of 2007 to 340 days in the first quarter of 2010 to 400 days in the first quarter of 2011.
  • Illinois was one of the top 10 states for foreclosure activity in April. (Go Illinois!)

The fact that lenders are first pursuing alternatives to foreclosure is probably a good thing. The fact that the rest of the process is taking so long is not a good thing. God knows we need to get this mess over with ASAP.

For Chicago foreclosure activity remains subdued compared to the last 2 years as shown in the graph below. However, April activity did not fall below the low reached in February.

Chicago Foreclosure Activity

Leave a comment

  • ChicagoNow is full of win

    Welcome to ChicagoNow.

    Meet our bloggers,
    post comments, or
    pitch your blog idea.

  • Advertisement:
  • Getting Real On Facebook

  • Subscribe To Getting Real

    Subscribe to RSS Feed RSS Feed

    Enter your email address:

    Delivered by FeedBurner

    Google
  • Meet The Blogger

    Gary Lucido

    After 20 years in the corporate world and running an Internet company, Gary started Lucid Realty with his partner, Sari. The company provides full service, while discounting commissions for sellers and giving buyers rebates.

  • Recent posts

  • Tags

  • Monthly Archives

  • Latest on ChicagoNow

  • Advertisement:
  • Fresh Chicago News