When will the mortgage companies go back to foreclosing after 3 months of being late?

There are a number of reason why they are waiting so long.

1) They own too many properties as it is, and can't get rid of them. There are bank owned properties that I have seen sitting for years, and not on the market for sale, because the banks can't get their money out of them. These properties weigh down their books, affect how much new money they can lend, and their profitability. Why would they want more?

2.) They don't have all their ducks in a row. Some banks got in trouble a while back for not having the proper paperwork on loans at the time of foreclosure.

3) They are giving owners time to do short sales. In some cases it is better for the bank, because of the costs involved in foreclosure, to allow owners to sell for less than what is owed.

4) There is too much uncertainty from government. It wasn't all Wall Street. Government is one of the big reasons we are in this mess. If banks are afraid of government touching things, they are slower to move.

If you define a housing recovery as returning to the home values at the height of the bubble, we are decades away from that happening. The housing bubble was a false market created by government regulations and trying to manipulate the housing market, and big banks and Wall Street trying to take advantage of that situation.

Because 14 major banks got into hot water by foreclosing before it was necessary, the government stepped in and is now requiring more paperwork and more time for homeowners to play catch up. These banks are now having to come up with different programs to offer consumers which allow them to stay in their homes. The banks also offer incentives if people want to get out from under their upside down loans. Things are going to be different and we will see a more level playing field.

Each mortgage lender has their own foreclosure procedures. In the past there were mortgage lenders, that were slow in exercising their right to begin the foreclosure procedure.

Currently there are mortgage lenders that start the foreclosure procedure after only one month of missing a mortgage payment.

The time frames for the foreclosure procedure was amplified because there were several lawsuits, against several of the major lenders, especially Bank of America and Wells Fargo. Also Country wide went under and was purchased by Bank of America.

These legal proceedings caused the lenders to delay foreclosing until the legal lawsuits were completed.

I hope this has been of some benefit to you, good luck.

"FIGHT ON"

It depends on who the mortgage company is & how busy they are. Some are back to normal. Normally you have to be 3 months behind & they start foreclosure procedures at 120 days. They are legally allowed to start if you are late period, although that is rare.

When it financially benefits them to do so. There are so many homes on the market, the banks can't sell them all fast enough. So at least people in the house keep sthe home maintained.

very soon