Foreclosures Plunge in first half of 2011

But this isn't good news. I can only shake my head and feel appalled at how the banks manage to screw us every which way except Sunday. The banks are so swamped in the logistics of processing foreclosed homes that it made the numbers drop..

RealtyTrac's CEO, James Saccacio, sounded a sour note, however, contending that the drop-off in filings can be traced not to economic improvement or a pick-up in the housing market, but to processing delays brought on by the robo-signing scandal in which it was discovered that bank employees were signing foreclosure documents without following proper protocols.
"[That's what is] pushing foreclosures further and further out -- we estimate that as many as 1 million foreclosure actions that should have taken place in 2011 will now happen in 2012, or perhaps even later," Saccacio said.

As a result, it will only prolong the housing slump, he said.

This casts an ominous shadow over the housing market where recovery is unlikely to happen until the current and forthcoming inventory of distressed properties can be whittled down to a manageable number," said Saccacio

cnn

Congress needs to stop fighting over taxing the rich. They do know that banks make up the rich, right? And start sending out legislation that forces these banks to get on the ball and get in gear.
Not only did they cause this mess, now they are maintaining it.

If the banks are not even processing foreclosed homes, does it matter that legislation is being put out to keep people in there homes?

What a nightmare.

And due to the long time they are taking to process a foreclosure, a new problem arises.

MOLD

Realtors say they don't think banks mean to incur thousands of dollars in mold damage just to save on monthly utility bills. But the mold problem appears largely to be a manifestation of the foreclosure crisis. Bills go unpaid, houses sit vacant, and the whole process takes much longer than anyone wants. Ohio Bankers League President Mike Van Buskirk says by the time the banks process foreclosure paperwork, it's often too late. "There are a lot of steps in government, the courts, county sheriff that are involved in it," he says. "While it varies across the state, some of them, thinking they're helping the consumers, are really dragging out the process, so that it can take two or three years." Realtor Jill Flagg says many lenders won't sell a home for less than the mortgage note, so the house sits and sits, and it continues to grow mold.

www.npr.org...

Not good,not good!!!!

I know working for the health department a few years ago(and it is sad I even have to say a few years ago) there was a big uptick in complaints about abandoned properties. Grass growing high, attracting rats which attracts snakes and bringing down the value of the neighborhood. Now my county doesnt enforce high grass, its not a health issue, if it gets high enough its a fire issue. But some counties do. Then they have to try to hold down the banks who now own these abandoned properties to actually start taking care of them.

Originally posted by nixie_nox
I know working for the health department a few years ago(and it is sad I even have to say a few years ago) there was a big uptick in complaints about abandoned properties. Grass growing high, attracting rats which attracts snakes and bringing down the value of the neighborhood. Now my county doesnt enforce high grass, its not a health issue, if it gets high enough its a fire issue. But some counties do. Then they have to try to hold down the banks who now own these abandoned properties to actually start taking care of them.

I can't find the article, but a year or so ago, a homeowner decided to mow a couple of foreclosed homes yards, just to keep up appearances.

He was fined by the city. They said it was their job. Even though the grass was over a foot high.

No good deed goes unpunished.

reply to post by TDawgRex


Funny how each local jurisdiction has its own thing. But in this case, yea no good deed goes unpunished. But how would the county find out he is doing it?
but technically I guess it would be trespassing. Maybe next time he can get a lawyer and litigate the county for allowing inaction that causes the dropping of the value of his property.

These numbers vary a lot depending on the geographic area. If you look at unemployment figures and the percentage of mortgages delinquent more than 90 days you get better predictors of the future. Here in Florida new mortgage delinquencies have brought the total percentage of delinquencies up to the 16 to 18 percent range!

Without an immanent bank bailout to adjust these mortgages, those properties will all be on the market in a year or two.

This means the banks are STILL cooking the books. They are intentionally *not* foreclosing on homes of people who aren't paying mortgages specifically because they want the foreclosure numbers to look better.

That's meaningless misinformation because foreclosures continue to skyrocket. It's just that the foreclosure process is dragging out longer so it creates a 'backlog' in the system.