RealtyTrac: 1 Million Foreclosures Delayed until 2012

RealtyTrac recently reported that an estimated 1 million foreclosures, auctions, and home repossessions will be delayed at least a year.  According to the article on Realtor.org, these foreclosures should have been filed in 2011, but will now instead contribute to the glut of “shadow inventory,” further delaying the real estate recovery.

Further complicating to the problem is the extended amount of time it takes for lenders to process foreclosures.  The average time to foreclose nationwide is 318 days, up from 298 days during the first quarter of 2011.  New York foreclosures take the longest – 966 days (2.6 years), while Texas only takes 92 days.  The obvious reason: New York is judicial foreclosure state.  Texas is both judicial and non-judicial (according to the foreclosure process chart at RealtyTrac), with non-judicial being the more common method.

 

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