Jan
14

Cheating Foreclosure Process Hurts Other Buyers

January 14, 2012

Chicago real estate underwaterUnderwater homeowners across the country are discovering that they can stay nestled in their homes for years, without making a single payment, if they follow a few steps and don’t shy away from a fight.

If you are facing foreclosure, you might be able to stay in your Chicago real estate a bit longer by taking a few steps. Consider doing the following to buy more time — challenge your bank, file paperwork at the last minute, request original paperwork and even consider declaring bankruptcy.

The amount of time necessary to process a foreclosure has more than doubled across the country. The average time, beginning at the first missed payment to the foreclosure auction is nearly two years, or 674 days. Washington D.C., and some states like Florida take more than 1,000 days to process the foreclosure, and New York comes close at 906.

Millions are eligible for foreclosure review where they can challenge bank actions and delay the foreclosure process. The 2010 “robo-signing” scandal showed bank employees were signing paperwork and acknowledging facts they had no knowledge of. Many Americans are finding that they can have their cases delayed and even dismissed on this basis by judges, though they can be resubmitted.

When homeowners file for bankruptcy, creditors are court ordered to stop collections. Bankruptcy also postpones home auctions for months at a time.

As some who are underwater on their payments try to cheat the system, the housing market further suffers. However, these evasion tactics are going to come back to haunt buyers. Banks and lending institutions will pass the cost of these imminent foreclosures onto later buyers in the form of borrowing fees in order to cover others’ risks.

Categories: Economy, Mortgages

About The Author

Read All Stories By Stephanie

Stephanie is an Integrated Account Coordinator at Rountree Group Integrated Communications. She has public relations experience in public affairs, social media, blogging, healthcare, manufacturing, real estate, restauranting and retail.

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