Foreclosure Process Speeds Up in California
Banks are speeding up the home foreclosure process in California, according to data out today. But one analyst says the process may start to slow down again.
It took lenders an average of 335 days, or about 11 months to complete the foreclosure process on California properties in the third quarter.
Daren Blomquist with foreclosure listing service RealtyTrac says that was down three percent from the previous quarter and an eight percent drop from a year ago.
"These foreclosures, if they’re going to happen, it’s better that it’s more like a band-aid that you rip off."
Ripping it off quickly, or speeding up the process…helps the housing market work through distressed inventory. But Blomquist says things may soon start to slow down when the state’s “Homeowner Bill of Rights” kicks in. The measure will bar foreclosures while loan modifications are pending and provide homeowners a single point of contact with lenders.
“In the short-term it’ll make the foreclosure numbers look even better but in the long-term it could prolong the process of allowing the housing market to recover.”
The “Homeowner Bill of Rights” takes effect on January 1st.