Connecticut’s Pending Home Foreclosures Will Take 10 Years To Process

June 22, 2011
By

To get a sense as to how serious the real estate problem is, a national study shows that it would take more than 10 years to clear up all the pending foreclosures in Connecticut.

And of course Connecticut is not the worst state for real estate problems.

Next door in New York state, it would take lenders 62 years at the current pace to repossess the 213,000 houses now in severe default or foreclosure, according to calculations by LPS  Applied Analytics, a prominent real estate data firm,” according to a New York Times story.

In the 27 states – including Connecticut, New York and Massachusetts – homeowners in default on their mortgages can live for years for free because it now takes much longer for banks to foreclose and evict homeowners. In each of these states judges must approve foreclosures.

There are 21,762 home owners in Connecticut that are 90 days  or more behind on their mortgage payments, the report (available below) shows.

“At the current pace of foreclosure sales (and please note, these sales are when the lender takes possession or there is some other involuntary liquidation – not if you or I were to purchase a foreclosed property from the bank), it would take 245 months, or just over 20 years, to work through the loans currently either 90+ days delinquent or in foreclosure,”  Mitch Cohen, Sr. Vice President, Managing Director, of MPRG, told CtWatchdog. MPRG represents LPS Applied Analytics.

The problem for banks will get worse and homeowners will have even more breathing room as millions of additional homeowners stop paying on their mortgages as more people lose their jobs or are unable to find new work.

Of course banks themselves have caused much of the delay by initially submitting fake documents to courts in the 27 states that require judicial approval for foreclosure. Now owners can hire real estate attorneys for as little as $1,500 a year for force banks to jump through hoops to prove they actually own the mortgages.

Plus, banks in some states are delaying foreclosure because they don’t want to end up managing hundreds of thousands of unwanted homes when few are buying.

“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?’ ” said Herb Blecher, an LPS senior vice president. “Now you’re probably not losing any sleep.”

“Clearing the pipeline in New Jersey, which like New York handles foreclosures through the courts, would take 49 years. In Florida, Massachusetts and Illinois, it would take a decade.”

Click below to see data from all states:

Media Requests June 20 2011

Similar Posts:

Share

Tags: , , , ,

4 Responses to Connecticut’s Pending Home Foreclosures Will Take 10 Years To Process

  1. Matt on June 22, 2011 at 5:44 pm

    245 months is just over 20 years, not 10 years.

    • George Gombossy on June 22, 2011 at 5:54 pm

      Thanks for that catch Matt. It is 20 years, the PR guy changed his quote. I can’t change the headline. George

  2. Jerry on June 23, 2011 at 3:15 pm

    I am a stock day trader who made a fortune during the crash of 2008-2009 by shorting (betting against) the banks and mortgage holders. Since that near depression starting event, nothing has changed. The administration has done nothing but over regulate the banks and stall the entire process. Instead of using the trillions of dollars the Fed printed to offer 1% loans to people who lost their jobs, they gave it to the very banks who caused the disaster. Those banks took that borrowed money at 1% and lent it out overseas at 3% making billions of dollars for themselves without lending to the American public as it was intended in the first place. The result has been a double dip recession in housing that some are calling a “housing depression”. The Fed chairman stated that he has “no idea” why the economy has stalled out since April. There is no political will to print any more money as our national debt is at its limit. Today, the United States opened its oil reserves in a desperate attempt to flood the market and drive oil prices down to save the American economy as inflation and gas prices have killed off any recovery. Lastly, new unemployment claims went up for the week by 9000.
    With a heavy heart I understand that my worst case senerio for America has become real. A deflationary situation that has the potential to last for decades. For full disclosure, I have more short positions that at any time in my trading life. I will make millions if we have another flash crash event or trade at the lows of 2009 again.
    If you have a 401K, I strongly suggest that you go into cash. If I’m right and the market crashes, you lose nothing. Without jobs and housing, America is dead. We cant eat i-phones.

  3. White on August 22, 2011 at 12:40 pm

    What is being done about your lawyer mill attorneys in this state providing false documents and illegal foreclosures? Bennett giving you a clue?

Leave a Reply

Your email address will not be published. Required fields are marked *