To give you an idea of just how much the “robo” scandal is toying with the numbers, LPS compared states that require foreclosures to go through the courts versus states that don’t (judicial versus non-judicial) and found the following:
- 50 percent of loans in foreclosure in judicial states have not made a payment in two years, as opposed to 28 percent in non-judicial states.
- Foreclosure sale rates in non-judicial states are about four times those in judicial states.
"Nationally, foreclosure pipelines remain at historic highs, but they are clearing at very different rates depending upon state procedures," says Herb Blecher of LPS Applied Analytics.
With the nation essentially split between judicial and non-judicial foreclosure states, it’s safe to say the foreclosure crisis will linger longer than anyone expected, especially with negotiations for a settlement between big banks and state attorneys general hitting yet another roadblock.