Despite the fact that it has been six years since the Barnie Frank housing bust, lenders continue to increase their efforts even today to sell homes at foreclosure auctions. October 2014 saw close to 60,000 being put up for auction by banks, a statistic that was up by 24 percent as compared to the previous month, and 7 percent as compared to this time last year, data firm RealtyTrac said. So why are more homes being sold at auctions even though it has been six years since the crisis?
Influx of Investors not Traditional Buyers
Foreclosure auctions seem to attract investors who have their eye on the prize, rather than traditional buyers who are interested in purchasing a home. These investors have cash in their piggy bank to spare and are fine with purchasing a property they haven’t even visited. Since most of the homes being auctioned for foreclosing are still occupied by its previous denizens, very rarely can a potential buyer determine the condition of a home prior to its purchase.
Banks Clearing Foreclosure Backlog
While every state has a different reason why there has been an upswing in foreclosures, one common underlying theme seems to be that the banks are preparing for a spring cleaning of sorts. They are beginning to clear the backlog of foreclosures that have been put on the backburner.
Lengthy Approval Processes & Laws
Other reasons for the delay are attributed to certain states, such as the state of Maryland, having court approval processes that are lengthy and time-consuming. Other states noted the there was a slowdown of the foreclosure process due to certain laws being passed.
Botching the Foreclosure Document & Incentives to Delay
It was also noted that some delays were also due to lenders messing up the handling of foreclosure documents. In order to address these practices, some of the largest banks in the country reached a settlement with their state’s attorney general. Other lenders seemed to have incentives to further delay the process and were stated to be waiting for the prices of homes to rise. This is what they have done in the past two years, allowing them to obtain better returns on the foreclosed homes.
How to Choose a Qualified Foreclosure Attorney
If you are a homeowner who thinks that you might have a chance in contesting the foreclosure of your home, you need to hire the services of a skilled and qualified foreclosure attorney to represent you. But how do you know what you should be looking for? Here are a few tips to ensure that you are on the right track:
- Visit the website of the US Department of Housing and Urban Development (HUD), which has a complete listing of counseling agencies, some which are free, before you hire a foreclosure attorney.
- Interview your foreclosure attorney and ask them if they are licensed to practice in your state, how much experience they have, and how many foreclosure cases they have worked on.
- Acquire a free consultation from the foreclosure attorney you are planning on working with on this important matter.