Why is California’s housing market is recovering, while Florida is double dipping?
Today’s LA Times proposes one answer: the foreclosure process.
California has a non-judicial foreclosure process. Thus banks were able to push through the foreclosure process early, peaking in the summer of 2008. After that quick shock, prices have been creeping higher.
Florida requires a judicial foreclosure process. But this measure intended to protect homeowners has backlogged the courthouses of every city and town in the state. As uncertainty reins, home prices keep falling and delinquency remains high. High-speed robo signings were a way around the judicial backlog. Now even that has backfired.
Notably the duration of foreclosure in California is over 122 days shorter than in Florida, according to LPS: