Friday
October 31, 2014

Foreclosure Timelines Grow Even Longer

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Foreclosure Timelines Grow Even Longer

The foreclosure process is growing even longer across the country. In the second quarter of 2014, foreclosures took an average of 577 days to complete. That’s up 10 percent from the 526-day national average in the second quarter of 2013, according to RealtyTrac’s Midyear 2014 U.S. Foreclosure Market Report.

The state with the longest average time to foreclose was New Jersey, at 1,098 days.

Behind the Foreclosure Crisis

Other states with some of the longest foreclosure processing times included New York (930 days); Florida (925 days); Hawaii (915 days); Illinois (850 days); and Massachusetts (784 days).

The lengthy timelines have been blamed on an upswing in “zombie foreclosures” that have been haunting the market. The term was coined to describe properties where the foreclosure process has been started and the home owner has vacated, but the foreclosure was never completed. Zombie foreclosures account for one in every five foreclosures nationally, according to RealtyTrac, with the highest number in New York, New Jersey, Illinois, and Ohio.

While nationwide foreclosure timelines lengthened, 17 states did speed up their foreclosure process during the second quarter compared to previous quarters. Those states include Minnesota (where average foreclosure times are down 20%), Texas (down 17%), Maryland (down 17%), Georgia (down 11%), New York (down 10%), and California (down 7%).

Meanwhile, the average time to foreclose was shortest in Delaware, where it took an average of 169 days for home owners to wind through the foreclosure process. Texas was next at 173 days, followed by Alaska at 185 days and Minnesota at 192 days.

Source: RealtyTrac