Those deeply underwater on their homes have a nice option that renters and those with equity in their homes don't. That option is to stop making home payments, effectively living in their home or condo scotfree, for as long as they can.



Millions have take the option, and with each person doing so, the longer the delays. Thus, the more who take that option, the greater the reward for all who do.



The Wall Street Journal reports that it takes 492 Days From Default to Foreclosure, up from 244 days in August 2007.



The average borrower in the foreclosure process hadn’t made a payment in 492 days as of the end of October, according to LPS [LPS Applied Analytics]. That compares to 382 days a year ago and a low of 244 days in August 2007.



In other words, people who default on their mortgages can reasonably expect, on average, to stay in their homes rent-free more than 16 months. In some states such as New York and Florida, the number is closer to 20 months.



Speeding up the process won’t be easy, as demonstrated by the banks’ continuing legal troubles related to robo-signers, bank employees who signed foreclosure affidavits without properly checking the required loan documentation.



Millions of Americans still are paying their mortgages even though they owe more than their homes are worth. The more banks’ backlog grows, the more likely they are to join it, adding to the already giant pile of foreclosures weighing on the housing market.

Imperative to Speed Up Foreclosures

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Simple Undeniable Facts



The simple, undeniable fact of the situation is that anyone who has not paid their mortgage for over 90 days deserves to lose their home, except in very limited conditions I describe below.

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Addressing Fraud