According to a recent report in USA Today, mortgage servicers and banks have started lengthening the amount of time they spending to formally and finally foreclose on homes owned by those who have defaulted on their loans, stretching the time frame up to last as long as two years. This can bode well for Pleasanton home owners in default but not for those who wish to buy those homes in foreclosure in the Pleasanton real estate market says Realtor Sonali Sethna.
Both those in the real estate market and those who read the daily papers have seen this change coming. Many banks around the country have a huge backlog of foreclosures due to the record number of property owners in loan default. Couple that with the increasingly long period of time required for loan modification review and a fair number of lawsuits in the recent past focusing on the improper filing of foreclosure documents by lending institutions, and both banks and mortgage servicers are being more cautious and taking their time with the process.
As a result, home owners in default often now stay longer in their homes than they have in the past as they wait for the lengthy process to play out. Although no hard statistics are available right now for the Pleasanton real estate market specifically, LPS Applied Analytics reports that as of the final month of 2010 a typical delinquent borrower in foreclosure went an average of 507 days without posting a payment for his mortgage. Before the housing market crashed, a homeowner in the US generally spent 250 days in default before foreclosure proceedings concluded.
According to Fitch Ratings’ managing director Diane Pendley, borrowers in default now continue to reside in those homes around 19 to 20 months prior to eviction. Pendley also indicates that the length of time for the process to conclude could expand to 22 or 23 months by the end of 2011.
For those looking to purchase a property on the Pleasanton real estate market, the longer foreclosure time periods could spell smaller inventory in the interim as well as higher sale prices once they become available.

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