This week President Obama announced the formation of a mortgage crisis unit which will be chaired by New York attorney general Eric Schneiderman, reports the Huffington Post.
The move has special significance because of the impact on a possible deal between America’s mortgage servicers and the states’ attorneys general.
With all of this tumult in the mortgage industry, many people still struggling to figure out their mortgage situation will be wondering how long it takes to process a foreclosure.
The answer, according to CNN Money, might surprise you:
Nationwide, the average time it takes to process a foreclosure -- from the first missed payment to the final foreclosure auction -- has climbed to 674 days from 253 days just four years ago, according to LPS Applied Analytics.
In fact, around the nation, about 40% of homeowners in default have not made a payment in at least two years. That could even be long enough for a mortgage crisis unit to get formed and possibly come to your assistance.
Another way to fight a foreclosure -- at least to slow it down -- is to use a bankruptcy.
Once you file for bankruptcy, an automatic stay usually kicks in and protects you from your creditors and bill collectors for some time. The automatic stay stops any lawsuit that is filed against you by a creditor, collection agency, government entity or other person seeking money from you. The automatic stay can be a powerful tool that you should seriously consider if you are one of those who are part of Georgia's high foreclosure statistics.
However, even if your home is under threat, you should not just file a bankruptcy willy-nilly, as there are numerous standards that you have to meet. And a judge may not accept your application if it is not prepared correctly. The best thing to do would be to speak to a local attorney about your situation and really learn if bankruptcy is the right tool for you.
Related Resources:
- Find an Atlanta Bankruptcy attorney (FindLaw)
- Judicial Foreclosure (FindLaw's KnowledgeBase)
- Stay: Definitions and History (FindLaw's LawBrain)
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