Jon Prior of Housing Wire reports that the consquences of missteps among mortgage servicers who were pressing failed home loans through foreclosure have proven contagious beyond the "judicial" states considered to be the most stern on documentation through the foreclosure process. Prior reports, "The largest decline came in
New York, where the process nearly halted completely and the rate at which homes moved from foreclosure to REO dropped by 91%.
New Jersey was the next closest with a 75% drop. The shortest decrease came in
California, where the rate fell 35%. The rate in most other states declined by at least 50%." For some--banks, namely--time is the enemy. For others--borrowers desperate for options--time is their friend. For now, time is on the side of borrowers.
Learn more about markets featured in this article: Los Angeles, CA.