Foreclosure mess gets messier

[marmar]

LOS ANGELES — More U.S. homes are entering the foreclosure process, but they're taking ever longer to get sold or repossessed by lenders.

The number of U.S. homes that received a first-time default notice during the July to September quarter increased 14 percent compared to the second quarter, RealtyTrac Inc. said Thursday.

That increase signals banks are moving more aggressively now against borrowers who have fallen behind on their mortgage payments than they have since industrywide foreclosure processing problems emerged last fall. Those problems resulted in a sharp drop in foreclosure activity this year.

The surge in default notices means homeowners who haven't kept up their mortgage payments could now end up on the foreclosure path sooner. Initial default notices are first step in the process that can eventually lead to a home being taken back by a lender. ...........(more)

The complete piece is at: http://xfinity.comcast.net/articles/finance/20111013/US.Foreclosure.Rates/

[Ichingcarpenter]

1. Banks are demolishing foreclosed homes now.

Some U.S. banks have started to demolish foreclosed properties and are even paying for the cost, which saves the financial institutions from maintenance, taxes and real estate marketing expenses.

Read more: http://www.allheadlinenews.com/articles/90062513?U.S.%20banks%20start%20to%20demolish%20foreclosed%20properties#ixzz1ag0FoLNd

[Odin2005]

2. More proof of the insanity of capitalism.

demolishing homes while there are homeless people on the streets.

[FarCenter]

3. The lot is worth more vacant than with an uninhabitable structure on it

Lots of these houses are vandalized, plumbing ripped out, wiring ripped out, water damaged from broken windows, etc.

Older homes may also not be up to code, and it would cost a lot to repair them to the point where the home could get a Certificate of Occupancy. So if the bank can't sell it "as is" to a renovator, there is little choice but to demolish it.

[qb]

4. Banks are still holding a lot of viable homes off the market to avoid a total crash.