Over 500 days to Foreclose. Exception or New Norm?
NEW YORK (CNNMoney) — Charles and Jill Segal have not made a mortgage payment in nearly five years — but they continue to live in their five-bedroom West Palm Beach, Fla. home.
Lynn, from St. Petersburg, Fla., has been living without paying for three years.
In Thousand Oaks, Calif., an actor has missed 30 payments, and still, he has not lost his home.
They’re not alone.
Some 4.2 million mortgage borrowers are either seriously delinquent or have had their cases referred to lawyers to pursue foreclosure auctions, according to LPS Applied Analytics. Of those, two-thirds have made no payments at all for at least a year, and nearly one-third have gone more than two years.
These cases can go on and on. Nationwide, it takes an average of 565 days to foreclose on borrowers in default from their first missed payments to the final auction. In New York, the average is 800 days and in Florida, where the “robo-signing” issue is particularly combative, it’s 807.
Lift-Off Support Holds. Bonds Rally to Begin Session
Is the flight to quality back on already? Ten-year Treasury yields are 3.5 basis points lower in early trading at 2.96% and the Fannie Mae 4.0 MBS coupon is +8/32 at 100-29 (after the roll). We feel auction concession drove yields higher this week and still see the underlying tone as bullish in the bond market. We are encouraged by “Lift-Off” support levels holding yesterday as well (lift-off levels: http://www.mortgagenewsdaily.com/mortgage_rates/blog/214242.aspx) One culprit of strength in bonds this morning: UK industrial production fell 1.7% on a monthly basis in April, versus predictions of a flat month. The March gain was +0.3%. Manufacturing orders fell 1.5%, far worse than expectations of a 0.1% decrease. “Investors remain cautious regarding global economic recovery in the face of increased uncertainty over the next Greek bailout package,” said economists at BMO Capital Markets. SP 500 futures are 0.15% lower at 1,285.75 and Dow futures are down 0.27% at 12,089. On Thursday the stock market broke a six-day losing streak as the Dow added 75 points – its first gain in June – but the session ended on a soft note as stock sold off in the final hour. The SP ended 0.74% higher, or up 9.4 points. Other overnight news included a widening trade surplus in China. At $13.1 billion, the May surplus failed to meet forecasts of $19.8 billion, but it did expand from $11.4 billion the month prior. Exports slowed to a 19.4% growth rate (annualized), compared with a 29.9% pace the month prior. Light crude oil fell 1.01% overnight to $100.94 per barrel, while gold prices declined 0.05% to $1,542. Brent crude, meanwhile, jumped to a five-week high of $120 per barrel after Thursday’s trade deficit was narrower than anticipated.
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