Many Cities Face Big Backlogs of Foreclosures

November 9, 2011

In half of the states in the country, it will take more than eight years to clear out huge backlogs of foreclosures at the current pace, new research from LPS Applied Analytics shows. Where foreclosures must go through the courts, it likely will take even take longer, too.

In New York and New Jersey alone, it may take more than 50 years at the states’ current sales pace to clear the pipeline of seriously delinquent or homes already in the foreclosure process, according to LPS Applied Analytics’ research. 

"This is like having water backed up behind a dam. We hope it'll be let out easy and not all at once," Allan Dechert, president of the New Jersey Association of REALTORS®, told USA Today.

After questions to lenders’ foreclosure procedures last fall, lenders are doing more checks when processing foreclosures, which have slowed the process of repossessing homes and created larger backlogs in many cities, experts say. 

States where courts aren’t usually involved in the foreclosure process are clearing out foreclosures at a much quicker pace—just under three years, according to LPS.

But some cities continue to face possibly decades of large foreclosure backlogs. The following are the states with the largest backlog of foreclosures, including the state’s “pipeline ratio,” which is the time it would take to clear the supply of seriously delinquent mortgages or homes in foreclosure at the current pace of sales.

  • New York: 57
  • Washington, D.C.: 57
  • New Jersey: 52
  • Maryland: 21
  • Connecticut: 20

Source: “Foreclosure Backlogs Could Take Decades to Clear Out,” USA Today (Nov. 9, 2011)

Read More:
Where Is Foreclosure Inventory the Highest?