Average Foreclosure Time Taking Longer and Longer
Homeowners facing foreclosure have been honing tactics to delay the inevitable. Some of the tactics include challenging the bank’s actions, waiting to file paperwork right up until the deadline, requesting the lender dig up original paperwork and declaring bankruptcy.
Nationwide, the average time it takes to process a foreclosure — from the first missed payment to the final foreclosure auction — has climbed to 674 days from 253 days just four years ago, according to LPS Applied Analytics.
Banks have given delinquent borrowers some of the ammunition they need to delay the foreclosure process. During the “robo-signing” scandal in 2010, it was revealed that bank employees signed paperwork attesting to facts they had no personal knowledge of. Now, borrowers are routinely challenging that paperwork.
Sometimes just asking the bank to produce the paperwork that shows it is the legal holder of the mortgage note can stall a repossession. Since mortgages are often transferred electronically, the official paperwork often gets misplaced.
In some cases, borrowers will file for bankruptcy in order to block a foreclosure. In these instances, courts order creditors to cease their collection activities immediately. Home auctions can be postponed as the bankruptcy plays out, which can take months.
If you are facing foreclosure or are in default on your mortgage, contact Christopher C. Phillips at Phillips Law for a free consultation. You may have more rights and options than you realize.