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New York City – Foreclosure timeline averaged a whooping 1,019 days (nearly 3 years) in the fourth quarter of 2011, possibly nation’s longest.
how is that even possible? at which point in the pipeline are these properties getting stuck? wonder how many properties the banks don't even bother with a Lis Pendens, so are in a sort of "shadow" part of the foreclosure pipeline
The backlog's mostly because of a court rule from October 2010:
"Under the rule, banks’ attorneys in each foreclosure must affirm in writing that they communicated with their clients, that the client reviewed the documents and that the documents are accurate. The attorneys must also affirm, under penalty of perjury, that the papers are correct. Otherwise, the foreclosure can’t proceed."
Judges woke up, actually read the docs and expect the lawyer to have read what he signed his name or face the consequences. They don't call it perjury for nothing.
Take out mortgage secured by real property. Sign papers. Blah blah blah. stop paying mortgage. Bank goes to Court perfects its lien. Auctions property... Life goes on.....
Unless everyone is part of the insane bubble then its let's bail out everyone nation.... This is fking complicated, only if you got rich off the bubble.
To meh, it's easy peasy.
> "Under the rule, banks’ attorneys in each foreclosure must affirm in writing that they communicated with their clients, that the client reviewed the documents and that the documents are accurate. The attorneys must also affirm, under penalty of perjury, that the papers are correct. Otherwise, the foreclosure can’t proceed."
So it takes at least 2 years for an attorney to be able to read documents like they are supposed to? or those documents don't exist, cannot be found, hence no foreclosure will ever happen?
why not squatting them if that's the case, solving homelessness at least it'd be a good by-product of this bubble.
The banks often lose pieces of paper, break the chain of title without proper documentation, and are otherwise sloppy. A judge on LI threw out several foreclosures, as did other judges upstate.
One big law firm up in Buffalo, devoted solely to pushing through foreclosures, had to shut down because it couldn't wade through the banks' messes and adhere to the law.
The avg length is about 3 1/2 years. one extra year due to settlement conferences.
The delay is not helping debtors, as most that cure due so within the first 60 to 90 days. The amount that is not paid for property taxes and maintenance costs during those years is paid by taxpayers in the case of the GSEs. Is this a wise use of funds?
There are around 2k - 2.5k new lis pendens per quarter, many of those are just shadow inventory in the next 3-4 years at discounted prices. Not that bullish.
actually 3.5 years is just the theoretical number, the current pending foreclosure cases in NY court system need at least 7 years to clean up
> actually 3.5 years is just the theoretical number,
exactly, it's the avg length of the pipeline for properties that already made it through. not for those just entering it now that's totally bloated. it's also underreporting it even for the properties that entered previously as those properties that got stuck in limbo are not counted, only those that exited.
wonder at what point within the pipeline the properties become vacant.
The following article reported it takes 1,056 days vs. 1,019 days from the OP.
Do people really believe that foreclosures in the outer boroughs will not impact Manhattan?
Btw, the people I heard about who got let go in recent weeks have been long time employees. Employees who have been with their respective firms for 10 to 20 years. They all received nice severance packages. The ones I heard about are from banking, financial services and insurance firms. All major employers in the city.
On the other hand, a couple of weeks ago, within a few blocks, I saw four jobs postings on storefront windows.
Someone wake me up when the foreclosure pipeline is back to normal and unemployment is below 8%. NYC unemployment rate is at 9.6 percent in February 2012 in case you forgot or didn't know. It was 9.3% in Jan 2012 and 8.8% in Feb 2011. Does that trend look good to you?
NY is heaven for deadbeats,
don't just looks at 1056 days or 7 years, the number of pending foreclosure cases are extremely low, it's just the corrupted officials are not working
Layoffs/decline in income/RE price drops/foreclosures in NY started later than other states. Government bailouts/QE1/QE2 and robo-signing basically paused everything for a couple of years. Bailouts have turn into regulatory changes and robo-signing is resolved. Unemployment in NYC is moving up again, 8.8% in Feb 2011, 9.1% in Dec 2011, 9.3% in Jan 2012, 9.6% in Feb 2012. On the other hand, national unemployment rate is down from 9% in Feb 2011 to 8.3% in Feb 2012.
So yes, NY *currently* has one of the lowest foreclosure rate in the country, but the rates are now going up faster in NY compared to other states. The foot has moved from the break pedal to the gas pedal.
Adding to the confusion is the blatant ignorance of these *national* banks like Citi and Chase -- ironically headquartered in New York City -- that do not understand New York City co-ops.
The crux of the problem is the sheer size, complexity, and seemingly infinite layers of administration of these behemoth banks. Just try to track down the "right" person for any given issue within something already as legally complicated as a foreclosure sale. Exacerbating the problem is the banks' farming out the foreclosures to their respective "Loss Mitigation Departments" which are administrated out of offices in "square" states like Missouri and Nevada, run by people who honestly don't have a clue as to what a co-op is, let alone command a workable knowledge of their fundamental differences with condos, or their legal complexities.
And of course splashing fuel onto this already blazing fire is the fact that these behemoth banks, with their *hundreds* of departments and dozens of addresses spread out across nearly every state, refuse to make it easy to contact anyone within their organizations via mail, telephone or (God forbid) email; they hide behind these blasted "877", "866", and "800" numbers that are staffed by brain-dead receptionists who have absolutely no authority (or incentive, frankly) to direct you to the proper executive who has any real authority or answers.
So you have these brain-dead zombie banks that are being run -- on a day-to-day operational level -- by lackeys who barely understand what a mortgage is, let alone how to walk anyone -- be it a mortgage holder, broker, or lawyer -- through the foreclosure process. They often don't even know WHO within the organization to transfer your call to. And even if they did, they aren't "authorized" to give you names, addresses, or phone numbers of those who CAN help you. Get it? In a twisted, perverted way, it's actually their JOB to keep you in the dark!
The banks have become so huge that they've become hopelessly stupid and ineffective; the right hand never knows what the left hand is doing, and frankly because the right hand is tired, overworked, and without the proper expertise anyway, it really doesn't care.
So good luck with all that.
Yes, the banks were not prepared for the number of foreclosures that hit the system. However, the banks have likely learn their lesson due to the time and cost associated the robo-signing fiasco. Besides having better staffed foreclosure departments, their policies and procedures have also likely been updated. The court systems are also changing to expedite the cases, like NY's requirement that lenders must have a real "decision maker" present at the foreclosure proceedings so that mortgages can be changed if necessary and deals can be made right there and then.
We'll have to wait and see how effective all that is in moving things along, but recent percentage increases in quarter-over-quarter and month-over-month foreclosure files in NY suggest that the foot is on the gas pedal now.
Am I the only one who was surprised to see that NYC's seasonally adjusted unemployment rate is at 9.6%? Not seasonally adjusted, it's at 10.2%, more than 1% higher than last year's 9.1%.
That's not lost on us, Sunday. Thank you for the info.
> Am I the only one who was surprised to see that NYC's seasonally adjusted unemployment rate is at 9.6%? Not seasonally adjusted, it's at 10.2%, more than 1% higher than last year's 9.1%.
fantastic point, i wasn't following NYC UE rates at all lately. do you have a link? just wondering which are the sectors driving the national vs nyc gap in trends