In response to:

Over Half of Foreclosures Now ‘Repeats’

michaelolenick Wrote: Oct 22, 2012 7:55 AM
Nonsense: the Chief Administrative Judge of Miami-Dade County says there hasn't been a delay in her courtroom for two years. Walk into Uniform Motion Conference -- short morning hearings -- in any FL courtroom and you'll hear bank lawyers arguing to relentlessly delay says with nobody, except the Judge, arguing against them. There is a law in FL that if lenders agree to use CA-like foreclosure laws they can get a final judgment in 90-days max; it's never used. These are probably foreclosures where past-due principal, interest, and fees were recapitalized: added to the top of a mortgage. Foreclose forces write-downs, leaving banks with worthless houses to maintain. It's not borrowers delaying evict: it's banks delaying insolvency.
Words Wrote: Oct 22, 2012 9:37 AM
I was wondering about that. We've had a house in our neighborhood in foreclosure for going on 3 years. They paid way more than the home was worth. It WAS the bubble in our neighborhood. All of our property taxes went up as a result of that one home selling for more than it was worth. When it sells for what it really is worth (the home is slowly deteriorating due to lack of maintenance), there will be a value adjustment in the neighborhood, and the government property tax windfall will come to an end. They're probably hoping this foreclosure never ends.
Jim88 Wrote: Oct 22, 2012 9:08 AM
Each delinquent loan on the banks books becomes a Scheduled Item on their books, as well as any REOs they have on their books, so by holding off on foreclosure keeps the REOs off their books, and the bank examiners see only one red flag for the bank, in delinquent debts trying to be worked out right off the bat, since the first thing they look at is the list of Scheduled Items, before they start their audit. If you foreclose, as a bank, you better have a buyer(s) standing in the wings to take that foreclosure off your hands by the time the hammer falls at the sale.
scott s. Wrote: Oct 22, 2012 4:44 PM
OK if loan is on the banks books, but how many of these are securitized into CDOs and the bank is acting as a servicer for a fee?

A fundamental question with both the Bush and Obama approaches to the mortgage foreclosure crisis is to what extent are policies simply putting off the inevitable?  Are “permanent” solutions being offered, or are we just recycling the same borrowers through one foreclosure after another?  Recent data from Lender Processing Services (LPS) sheds some light on the question.

The most recent LPS data, covering to the end of August 2012, shows that for the first time, over half of foreclosures are for borrowers that were previously in foreclosure.  Now there are several ways to read the chart below.  On...