Delinquent Homeowners Stay Without Paying Mortgage

In a Real Estate market brimming with foreclosure, homeowners who have been delinquent on their mortgage have managed to stay in their homes for sometimes a year or longer. An article by CNN Money points out that some owners have managed to stay in their homes as long as five years without paying their mortgage.   This is common in states like California and Florida who were the hardest hit states in the aftermath of the Real Estate bubble. The reason so many homeowners have been able to get away with this is because the courts are overwhelmed with the number of foreclosures they have to work on. In Tampa, only a few judges are handling thousands of foreclosure files that can take over a year or longer just to get to a file at the bottom of the pile. According to Nationwide, it takes an average of 565 days to foreclose on a property. This gives delinquent homeowners a chance to stay in their homes in some cases a few years. Currently there are 4 million homeowners across the country who are behind or are unable to make payments. With foreclosures still on the rise, it is likely we can see entire neighborhoods filled with homeowners who aren’t paying their mortgage. This can force down home prices making it very likely that we sill home prices fall for years to come.

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~ by fnunez on June 10, 2011.

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