Delinquent Loans May Still Face Foreclosure After Exceeding Statutes of Limitations
Black Knight Financial Services reports that the courts in three states are looking into how to handle homes in foreclosure coming up on statues of limitations.
Highlights from the Black Knight Financial Services January 2016 Monitor report relevant to homeowners in New Jersey are as follows:
In three states, Florida, New Jersey and New York, various courts are deliberating the specifics around how statute of limitations law is applied to foreclosure actions.
High-end estimates based solely on loan level delinquency timelines show that in those states up to 98,000 seriously delinquent loans may face some degree of statute of limitations exposure.
Depending upon the courts’ decisions, statutes of limitations could apply to mortgages more than 5 years past due in Florida or more than 6 years past due in New Jersey and New York.
Potential exposure levels in New York and New Jersey have actually risen over the past 12 months – currently sitting at 35,300 and 22,000 respectively – due to limited resolution in severely delinquent loan populations in both states.
37 percent of loans more than 5 years delinquent in Florida are not actively involved in foreclosure – potentially presenting additional risk dependent on court rulings.
In New York and New Jersey, 22 percent and 21 percent of loans more than 6 years delinquent are not in active foreclosure.
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