The average foreclosure time in the U.S. has hit a record high of 631 days, according to Mortgage Monitor, a data-tracker analysis by LPS Applied Analytics.
That’s nearly 21 months.
Time Moneyland’s Alison Rogers attributes the startling statistic to several factors in the foreclosure process.
For example, lenders have started painstakingly reviewing foreclosures ever since the “robo-signing” scandal, in which borrowers accused financial institutions of moving foreclosures without following the proper protocol.
But Goode puts a positive spin on the report:
“What does this mean if you’re a potential buyer? I think in many ways a purchase now could make sense, because interest rates are very near historic lows. And I’m generally in favour of consumers buying a home that they can stay in for seven to 10 years, which is usually enough time to ride out an unfavorable market cycle.
However, you’ll want to review localised default and foreclosure rates with your real estate agent, just to make sure that your local real estate market isn’t going to suffer continued downward pricing pressure from foreclosures coming to market. In other words, it’s ok to buy; just make sure that you don’t slip in that pool of water on the floor.”