Sales for Tax Deeds and Foreclosures Take Almost 700 Days in Some Areas

by on Foreclosure Crisis

Sales for tax deeds and foreclosed houses are not conducted right after the homeowner falls behind on his mortgage payment. In some areas of the U.S., it could take a few months before a foreclosure proceeding is even started, while in others, it could take almost two years before foreclosed owners are evicted from their properties.

In Florida, West Palm Beach foreclosures for sale and foreclosures in other local areas take a long time before they are completely processed and sold. The market that takes the longest in the state in terms of processing and selling foreclosed houses is the Tampa-St. Petersburg-Clearwater region. According to a report published by LPS Applied Analytics, it can take as long as 673 days before owners of a foreclosed residential property are evicted and the property is sold.

Market analysts claim that this shows the amount of Florida bank foreclosures that are clogging the pipeline and demonstrates how burdened local courts are with foreclosure cases. The Tampa metro area is ranked fifth in terms of U.S. regions with the slowest pace in completing foreclosure processing and sales.

According to LPS, homeowners who have been delinquent in their loans often stay in their dwellings for an average of 285 days before a foreclosure notice is even sent to them. Almost another 400 hundred days will then pass in most cases before sales for tax deeds and foreclosures are conducted and homeowners are then forced to leave the premises.

Economists stated that, with processing taking almost two years, the supply of distressed properties in the country will continue to be high for many more years. This will weigh down the housing market since foreclosures sales need to be disposed of before prices and markets can recover, economists have added. They also stated that markets like Florida demonstrate how overwhelmed with foreclosure cases judicial systems are and how badly the country needs an alternative procedure.

In the case of Florida, a number of industry associations has recommended weeding out the required judge's approval to speed up sales for tax deeds and foreclosures in the region. They argued that a non-judicial process will be the better option for a state that has some of the highest supplies of distressed homes.

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