Wednesday, May 18, 2011

Banks Delay Foreclosure To Consider Short Sales - Homeowners Live Mortgage Free For Longer

Banks Delaying Foreclosure To Consider Short Sales - Homeowners Living "Mortgage Free" For Longer

According to this RealtyTrac article, Foreclosure Activity at 40-Month Low, foreclosure activity (foreclosure filings, notices of default, notices of trustee sale, foreclosure auctions and REO's, etc.) is on the overall decline. While this sounds like good news, the problem is that foreclosure activity remains at historically high levels, and, according to James J. Saccacio, chief executive officer of RealtyTrac, the foreclosure activity slowdown is due to foreclosure process delays rather than any type of housing market recovery. For example, the article states that Mortgage Bankers Association data shows that 3.7 million properties now have mortgages that are "seriously delinquent" (i.e. mortgages that are highly likely to be foreclosed eventually). He goes on to state that the delays occur in two stages: stage 1- delinquency to foreclosure process and stage 2 - foreclosure process to actual foreclosure (i.e. the bank takes the property).

Mr. Saccacio believes that delays in the delinquency to foreclosure process stage is due to banks, mortgage companies and mortgage servicers "are no longer automatically pushing loans that are more than 90 days delinquent into foreclosure but are waiting longer to allow for loan modifications, short sales and possibly other disposition alternatives". For example, the article states that the nationwide average timeframe to complete foreclosure is now at 400 days (up from 340 days in 2010 Q1 and 151 days in 2007 Q1). The article also mentions that the foreclosure process in states such as New Jersey, New York and Florida take even longer. While the article does not provide any information for Tennessee, I can say from personal experience that the foreclosure process in the Nashville Tennessee is definitely taking longer that it used to. A side effect of this foreclosure process delay policy is that financially distressed homeowners can reside in their homes for a long time all why paying no mortgage. In other words, homeowners and property owners facing foreclosure can live "mortgage free" for a long time! This is actually be good news for financially distressed homeowners and property owners who have defaulted on their mortgage loans. Personally, I know it is a good thing for my short sale clients. Reducing foreclosures by allowing more short sales is the right thing to do for the homeowners, property owners, bank shareholders and taxpayers. We will see if that favorable trend continues.

As always, I recommend that financially distressed homeowners use this extra time to take action and prevent foreclosure. Contact a foreclosure defense and/or bankruptcy attorney, a short sale real estate specialist like myself, or a legitimate mortgage loan counselor. Please just do not let the bank foreclose on you without trying to prevent foreclosure. If you have a mortgage loan with Wells Fargo, Bank of America (BAC Home Loans or Countrywide Mortgage), CitiMortgage, Chase (JPMorgan Chase), America's Servicing Company (ASC), GMAC, a Fannie Mae owned loan, a Freddie Mac owned loan, an FHA insured mortgage loan, a THDA mortgage loan, or any type mortgage loan, and you have missed mortgage payments, or will miss mortgage payments, please Contact Jim for a free no obligation consultation to discuss your foreclosure prevention options.

Free* Short Sale and Foreclosure Help and Assistance for Nashville, Brentwood, Franklin, Nolensville, Spring Hill, Murfreesboro, Smyrna, LaVergne, Columbia, Mt. Juliet, Springfield, Gallatin, Hendersonville and Middle Tennessee Financially Distressed Homeowners and Property Owners. Stop the Bank from Foreclosing with a Quick Cash Offer or Short Sale. If you are a Nashville, Brentwood, Franklin, Nolensville, Spring Hill, Murfreesboro, Smyrna, LaVergne, Columbia, Mt. Juliet, Springfield, Gallatin, Hendersonville or Middle Tennessee homeowner, property owner, condo owner, real estate investor, home builder or real estate developer who cannot pay your mortgage payments (due to losing your job, having your income reduced, illness, health problems, adverse business conditions, slow sales, loss of investment property tenants, vacancy issues, lack of funds to complete the project, feuding business partners, etc.), know that you will not be able to pay your mortgage, have defaulted on your mortgage, are already in foreclosure, or owe more than your home is worth, please contact Jim to discuss a short sale (when the real estate sale proceeds are not sufficient to pay off the mortgages and liens on the property). Jim helps sellers (homeowners, property owners, condo owners, owners of high end homes and properties (estate homes, luxury homes and executive homes), real estate investors, home builders and real estate developers) of distressed real estate, short sales, pre-foreclosures, foreclosures, investment properties, failed new construction projects and struggling commercial real estate developments located in any Middle TN County (Rutherford, Williamson, Davidson, Maury, Sumner & Robertson). If you need to short sell your house or property, or you need a quick sale to stop a foreclosure sale, you can Get Free* Short Sale and Foreclosure Help and Assistance from a Nashville Tennessee and Middle Tennessee Short Sale and Foreclosure REALTOR, Real Estate Expert and Real Estate Investor. (*Free: In a real estate short sale, the bank or mortgage company usually approves and pays all of Jim's commissions and fees.)

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