Bankruptcy Attorney | The Foreclosure Crisis is Still Alive (Pt. 1)

Bankruptcy Attorney | The Foreclosure Crisis is Still Alive (Pt. 1)

Bankruptcy Attorney | The foreclosure crisis in the U.S. is still very much alive. Despite the fact that there are fewer homes entering the foreclosure process now, two-thirds of home loans that are currently in some state of the foreclosure process entered that process between 2004 and 2008. According to RealtyTrac who tracks these foreclosures, the average foreclosure now takes 629 days to reach completion. That’s the longest the process has ever taken since RealtyTrac began tracking the length of foreclosures in 2007.

What is Foreclosure?

Foreclosure is a legal process where a creditor, such as a lender or mortgage holder, can repossess or sell property in order to repay the debt that is owed on the property. A mortgage holder is able to foreclose on property any time after a borrower starts missing payments on the mortgage, unless it has been otherwise stated in the mortgage paperwork. These rules are also dependent on the state in which the property is located. Each state will have their own rules regarding timelines for foreclosure, so you’ll want to work with an attorney that specializes in your own state’s rules regarding foreclosure.

States Still Fighting High Foreclosure Numbers

The amount of homes entering foreclosure are at a 10-year-low but still it’s taking forever to get the ones that have been started through the process. New Jersey has consistently had a high foreclosure rate and with that a long process. Foreclosures that were completed during the first half of 2015 took an average of 1,206 days. That number is from the notice of default (or notice that a lawsuit has been filed for the ownership of the property) to the actual bank sale or repossession of the home. That means, on average, the foreclosure process took more than three years.

States with High Foreclosure Rates

Though the national foreclosure rate is down 3% from where it was from January through June of 2014, there are some states where the foreclosure rate remains particularly high:

South Carolina
Total properties with foreclosure filings: 11,479
Foreclosure rate: 1 in every 187
Change from 2014: down 13%

Indiana
Total properties with foreclosure filings: 15,227
Foreclosure rate: 1 in every 184
Change from 2014: down 13%

Nevada
Total properties with foreclosure filings: 9,328
Foreclosure rate: 1 in every 126
Change from 2014: up 10%

Maryland
Total properties with foreclosure filings: 21,880
Foreclosure rate: 1 in every 109
Change from 2014: down 1%

New Jersey
Total properties with foreclosure filings: 32,713
Foreclosure rate: 1 in every 109
Change from 2014: up 24%

Florida
Total properties with foreclosure filings: 95,129
Foreclosure rate: 1 in every 95
Change from 2014 down 22%

Despite the fact that Florida has seen a decrease in foreclosure activity, the state still has a record number of houses in the foreclosure process. It also has the fifth longest timeline for foreclosure completion: an average of 989 days. – Simon Resnik

Specializing in bankruptcy and foreclosure law for over 20 years. Call attorney David Pinkston for a free consultation today: 904.306.5791. #FloridaBankruptcyAttorney #FloridaBankruptcy

If you are thinking about #bankruptcy or #foreclosure in the Jacksonville, Florida area, you should call attorney David Pinkston. David is very experienced with all aspects of bankruptcy law yet very personable and easy to talk to. Call Us Today! 904.306.5791