RealtyTrac, an industry consulting firm, said the time for a bank to take back foreclosed homes has increased 37% in New York from last year. It now takes about two years for the lender to take back a foreclosed property. Some industry experts believe this is because banks cannot afford to take back the homes.
The banks do not want to have inventory of properties whose values have dropped significantly, according to some experts. The banks would have to write-down the losses and raise more capital to be in line with compliance standards.
In the meantime, without taking possession through foreclosures, the banks collect servicing fees on the bad mortgages and the banks do not have to incur other costs, such as lawn maintenance on these homes.
The increased scrutiny of mortgage documents and faulty paperwork is also prolonging the process of foreclosure. According to Rick Sharga of RealtyTrac, it will take between three and four years in order to get loans into foreclosure at the current pace.
I think this means there will be an increase in short sales for distressed homeowners. As a Certified Distressed Property Expert (CDPE) and a Realtor, I am uniquely qualified to help home sellers in this unusual housing market.
To receive more information, feel free to text me or call me at the number below.
If you are thinking of selling or buying a home, or require more information, please feel free to contact me.
Michael Friedman
Realtor, Certified Distressed Property Expert (CDPE)
Lang Realty
561-247-3550
Boca Raton FL real estate for sale and surrounding areas including real estate properties for sale in: Belle Glade, Boca Raton, Boynton Beach, Bryant, Canal Point, Dania, Deerfield Beach, Delray Beach, Fort Lauderdale, Hallandale, Hialeah, Hobe Sound, Hollywood, Indiantown, Jupiter, Key Biscayne, Lake Harbor, Lake Worth, Loxahatchee, Miami, Miami Beach, North Miami Beach, North Palm Beach, Opa Locka, Pahokee, Palm Beach, Palm Beach Gardens, Pembroke Pines, Pompano Beach, South Bay, West Palm Beach, Lang Realty
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ReplyDeleteCharles A