In a move to speed up the foreclosure process, Rep. Darrell Issa, R-Calif. is compiling a list of the “slowest” foreclosure states and is considering withholding Federal aid to those states.
Our state of Connecticut ranks 5th, slightly behind Maryland in average length of time to foreclose on a property, just shy of 600 days. In other words, the average foreclosure time in Connecticut is over a year and a half.
The shortest timeline is Texas, which takes and average of just 86 days to complete the foreclosure process.
Speeding up the process will take a delicate balance. The recent “Robo signer” debacle stemmed from an effort by lenders to speed up the average foreclosure time.
A longer foreclosure window means it will take more time to clear the market of distressed property. On the other hand, it gives respite to under-water homeowners who can likely stay in their property for 6 months to 2 years (and sometimes longer) without paying their mortgage. This is never an ideal situation, but can give these homeowners a chance to financially rebuild.
Are you dealing with a short sale or foreclosure? Do you have any questions on either process? If so, visit the “Contact Me” page on www.ToddTurcotte.com and send me an email.
To read the entire article from Housing Wire, visit: http://www.housingwire.com/2011/11/16/issa-looks-to-withhold-federal-funds-from-slower-foreclosure-states?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+housingwire%2FuOVI+%28HousingWire%29&utm_content=Google+Reader
