Sunday, June 19, 2011

Home owners on brink of repossession told not to worry... as it will take banks 62 years to clear backlog - 19th June 2011

Home-owners on the brink of having their homes repossessed may be offered an unexpected reprieve, after it emerged it may take up to 62 years for banks and the courts to process the backlog of claims.

At the current rate of repossession, analysts calculated it would take lenders in New York state 62 years to process the 213,000 threatened houses - the longest in the country.

In New Jersey it would take a staggering 49 years to clear the backlog, while it would take a decade to repossess all the outstanding homes In Florida, Massachusetts and Illinois - all of which use the courts to process claims.

Speaking to the New York Times, Herb Blecher from Real estate data firm LPS Applied Analytics said: 'If you were in foreclosure four years ago, you were biting your nails, asking yourself, ‘When is the sheriff going to show up and put me on the street.'

'Now you’re probably not losing any sleep.'

For those in the 27 states who do not use a court based repossession process, the outlook however is not so rosy.

LPS calculated that in California it would take just three years to clear the backlog, while in Nevada and Colorado it would take only three.

Despite the grim outlook for some, repossessions are down nationally by a third since last fall.

The news came as it emerged almost one in every 100 households are receiving foreclosure notices in a Western state. Read More