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Foreclosure that has taken Eternity to Close



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By : Scott Zahid    99 or more times read
Extended period of foreclosure properties where borrowers do not pay their mortgage payments for about a year or two is common to hear, but a case lasting for 25 years is rather rhetorical. Legally, a homeowner with a delinquent loan, who is undergoing a foreclosure process, is exempted to make payments against the loan until the closing process is over. However, several property owners are taking undue advantage of this. Many people are resorting to legal procedures to push their foreclosure further. However, some are legitimate and some illegal.

Long time taken to trade a delinquent loan pinches hard on the lender’s pockets. There is huge carrying cost, which the lenders have to bear. A normal foreclosure process takes up to year to wind up, but with the recent “robo-signing” fiasco, the time taken to close up on a property has increased from one to two years.

One such case is of Stacey Varney Ennis, a Sun Prairie resident who is running around for two years to free her house from being seized. Nonetheless, this seems like just the start for Ennis if you compare it to the 25-year long battle Patsy Campbell has undergone to save her house from foreclosure.

The 71-year-old woman, who is a retired insurance saleswoman, resides in her Okeechobee County house since 1978. Her late husband bought the house for $68,000, which has now snowballed to a whopping $203,000. In the $203,000 amount, $148,000 is just the interest and rest $68,800 is the principal amount. The delinquent loan was originally issued by First Federal Savings and Loan of Martin County and is currently being handled by Commercial services of Perry. Campbell had stopped paying the mortgage since 1985, because of an illness that caused her a job.

Patsy Campbell’s foreclosure case has been through her two marriages, three recessions and four presidents. The reasons she cited for the case to run so long is personal bankruptcy, incorrect paperwork, untimely and inappropriate transfer of loan between lenders and several other irrelevant reasons. Even the lenders that held her mortgage have either merged or run out of businesses over these years.

The lawyer handling her case says it’s “the foreclosure from hell” and “this is every lenders nightmare.” Although this is one of its cases, several borrowers are succumbing to such tactics. A recent research by LPS Applied Analytics showed that an average foreclosure initially took place after 289 days approximately, which has now risen to 492 days, according to October Statistics.
Original Post: http://www.mostlyforeclosures.com/blog/foreclosure-eternity-close.html on MostlyForeclosures.com, your source of foreclosure homes.

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