Some States Still Bogged Down By Foreclosures

Some States Still Bogged Down By Foreclosures

The backlog of homes in foreclosure is still clogging the pipeline in some states, according to a report by the Federal Reserve Bank of New York. 

The large volume of loans in states that have a judicial process for foreclosures appears to be hampering the housing recovery, the report states.

States with judicial foreclosures have maintained higher foreclosure rates than states that do not require foreclosures to be approved by the courts. The length of time a loan remains in the foreclosure process in judicial states is significantly longer, the New York Fed notes, calling out Florida, New Jersey, and New York as the most extreme examples of this. States with judicial foreclosures, however, have seen a “modest” improvement in home prices. See more.....