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Foreclosure delay, delay, delay

By Holden Lewis · Bankrate.com
Thursday, June 16, 2011
Posted: 3 pm ET

Ominous numbers from RealtyTrac this week. The online marketplace for foreclosure properties says foreclosure filings in May were 33 percent lower than in May 2010, while, at the same time, the inventory of unsold, repossessed homes went up.

Even as foreclosures decline, homebuying is declining even faster.

"We have a lot of distressed properties on the market, and we still have a lot to get through," says Shaun White, vice president of RE/MAX. "Up to this point we've sold, probably, three-and-a-half, 4 million foreclosures that have hit the market since this began, and we're probably about halfway through the situation. Hopefully, in time, it won't take as long to finish the second half as it did the first half."

White spoke Wednesday at the annual conference of the National Association of Real Estate Editors in a panel discussion moderated by Bankrate.com reporter Polyana da Costa. The conference is this week in San Antonio.

Lenders and Fannie Mae and Freddie Mac need to streamline their processes even more to run through the foreclosure inventory, White believes. He is encouraged that more investors are buying distressed properties.

Robert Doggett, a staff attorney with Texas Rio Grande Legal Aid, disagrees that the pace of foreclosures needs to be accelerated. He describes that belief with a dismissive snap of his fingers: "Make the market work! Move on! No, move out."

Industry experts like to say that foreclosures need to proceed faster while the banking industry resists remedies, Doggett charges: "Where's the regulation to prevent this from happening again? Y'all wrote the stories. It's not happening. It's delay, delay, delay. Funny how that works."

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2 Comments
Debra James
June 28, 2011 at 5:59 pm

Rosemarie, you are in a situation that is familiar with many home owners around the country. However, it is totally fair that you should continue to pay for a condo that has decreased in value. Based upon the logic of your statement, the bank should have increased your payment had the condo increased in value.

I wonder why people who buy all kinds of stuff on credit knowing that it will decrease in value like cars, appliances, furniture, clothes, etc., believe that a home is not worth paying for if it's lost some market value.

ROSEMARIE ROSSI
June 19, 2011 at 7:52 am

I HAVE A HOME EQUITY LOAN WITH WACHOVIA BANK NOW WELLS FARGO. I HAD A MORTGAGE, REFINANCED & BANK WORKER CHGD LOAN TO A HOME EQUITY LOAN. ? WHY? I ASSUME IT HAD SOMETHING TO DO WITH HIM MAKING $$. HE ALSO TOLD ME THE FIRST PAYMENT DUE WLD BE IN A CPL OF MOS. SO I THOUGHT GREAT THIS GIVES ME A CHANCE TO GET CAUGHT UP ON OTHER BILLS. WELL HE FAILED TO TELL ME THAT ALTHOUGH I WOULD HAVE A CPL MOS GRACE PERIOD OR SO I UNDERSTOOD THAT THE INT PAYMENT WAS ACCUMULATING WHICH TOOK ME MOS TO GET CAUGHT UP. I CLD BANK FURIOUS BUT END RESULT WAS POOR STUPID ME!!:( I AM SINGLE SELF-SUPPORTING & CANNOT RETIRE DUE TO FINANCES. I AN THINKING OF LETTING CONDO GO INTO FORECLOSURE ESP WITH CONDO FEE WHICH IS MORE THAT HALF OF MY MORTGAGE. I CLD BANK EXPLAINING SITUATION ASKING THEM TO WORK WITH ME. I ASKED TO HAVE COND RE-ASSESSED & OVER AMT IT IS NOT WORTH DUE TO RECESSION BE WRITTEN OFF. THEY TOLD ME THERE IS NOTHING THEY CAN DO. I THINK IT IS UNFAIR TO CONTINUE TO PAY FOR A CONDO THAT HAS DECREASED IN VALUE, ESP IF I AM WILLING TO WORK WITH BANK INSTEAD OF WALKING AWAY & LETTING CONDO GO INTO FORECLOSURE. TELL ME HOW IS THAT FAIR OR SENSIBLE???????? I AM FRUSTRATED & FEEL STUCK. MY CREDIT SCORE IS IN THE 800'S & I HATE TO DAMAGE IT BUT VIEW IS GETTING MORE BLURRY.