Foreclosure-Prevention Efforts Delay Process

IRVINE, CA-“Efforts to prevent unnecessary foreclosures and mitigate their impact on home values have resulted in a foreclosure process that takes an average of 477 days nationwide, and more than two years in some states, which is holding many of these must-sell properties off the market,” said Daren Blomquist, VP of locally based real estate and foreclosure data firm RealtyTrac, in a prepared statement. “Even if all these homes flooded the market simultaneously, they would likely not cause the once-feared double dip in prices given supply constraints from non-distressed sellers and stronger demand.”

Blomquist added that given these market dynamics, “it’s not surprising to see that Florida, Illinois and New Jersey—states with three of the four longest foreclosure timelines—have all had laws take effect in the last six months that speed up the foreclosure process on vacant properties. These laws should help provide some extra supply and possibly help reduce the threat of another housing price bubble forming in these markets.”