Delaying Foreclosure: Borrowers Keep Homes Without Paying

[st louis steve]

Delaying Foreclosure: Borrowers Keep Homes Without Paying

By Les Christie | CNNMoney.com – 5 hours ago
Delinquent borrowers facing foreclosure are learning that they can stay in their homes for years, as long as they're willing to put up a fight.
Among the tactics: Challenging the bank's actions, waiting to file paperwork right up until the deadline, requesting the lender dig up original paperwork or, in some extreme cases, 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.
It takes much longer than that in Florida, where the process averages 1,027 days, nearly 3 years. In D.C., foreclosure averages 1,053 days and delinquent borrowers in New York often stay in their homes for an average of 906 days.
And while some borrowers are looking for ways to make good with lenders and get their homes back, many aren't paying a dime. Nearly 40% of homeowners in default have not made a payment in at least two years, according to LPS.
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Many of these homeowners are staying in their homes based on a technicality. There is rarely any dispute over whether or not they have stopped paying their mortgage, said David Dunn, a partner at law firm Hogan Lovells in New York, who represents banks and other financial institutions in foreclosure cases.
http://finance.yahoo.com/news/delaying- ... 00544.html

[Abiding in His Word]

Delinquent borrowers facing foreclosure are learning that they can stay in their homes for years, as long as they're willing to put up a fight.

I know this to be true even without a fight in Florida at least. There is such a backlog of foreclosures that the courts can't keep up, partially because of the type of delays mentioned in the article.

It takes much longer than that in Florida, where the process averages 1,027 days, nearly 3 years.

Last weeks local paper said that the State has stopped the mediation process afforded to those who are facing foreclosure in order to expedite the backlog. They can request mediation, however, they must foot the bill now to hire a mediator rather than one being provided by the court.

My own son walked away from his condo 3 yrs. ago after many unsuccessful negotiations with the lender. The condo he paid $180,000 for is now selling next door for $59,000. The last correspondence of any kind was 2 yrs. ago until last month when he received a letter stating that his mortgage was in arrears $80,000 and would he please make a payment. He hasn't lived there for 3 yrs.

[st louis steve]

Free Rent for Millions of Americans
December 31, 2011

51

So, you think “a contract is a contract, a deal’s a deal.” Not in housing, it isn’t.

Delinquent borrowers facing foreclosure are learning that they can stay in their homes for years, as long as they’re willing to put up a fight.

Among the tactics: Challenging the bank’s actions, waiting to file paperwork right up until the deadline, requesting the lender dig up original paperwork or, in some extreme cases, 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.

In Florida, it takes over 1,000 days.

Under these conditions, lenders do not want to foreclose. Why not? Because they do not want to spend the money on legal fees. They figure that they have owners in the houses. The owners are likely to take care of it. What if it is empty? Squatters will move in. Whast if owners fight it? Legal fees will rise. The lenders might lose if they can’t prove they own the deed.

If an owner was paying $2,000 a month mortgage, delaying for three years is worth $72,000 before taxes.

This about this: http://patriotupdate.com/16539/free-ren ... -americans

And while some borrowers are looking for ways to make good with lenders and get their homes back, many aren’t paying a dime. Nearly 40% of homeowners in default have not made a payment in at least two years, according to LPS.