How Many People Are Not Paying Their Mortgage?

February 28, 2012
By David Goldman on February 28, 2012 8:44 AM |

Jacksonville Foreclosure Defense TeamNew data from Lender Processing Services (LPS) shows that at the beginning of 2012 there were approximately 6,082,000 mortgages that were not being paid in the U.S. LPS's statistics are derived from it's database of approximately 40 million mortgage loans, including loans that are greater than 30 days late and loans in foreclosure. This puts the national mortgage delinquency rate at around 8 percent. The formula for determining the delinquency is measured by all loans behind by one payment. LPS reports that of these past due, Florida has the highest percentage of non-current mortgages.

This news is even more interesting on the back end of the fact that the Senate Judiciary Committee passed the Foreclosure Fast Track Bill. Senate Bill 1890 would reduce the time Banks are allowed to seek a deficiency judgment from 5 years to 1 year. A deficiency judgment is a court order that allows a foreclosing bank to seek the difference between the price of the home sold at judicial sale and the amount remaining on the mortgage. Making that window smaller would mean that, with the foreclosure back log still at an all time high, Banks would have to significantly clean up their process in order to timely file these judgments.

One of the best ways to avoid a deficiency altogether is by remaining in constant contact with banks and lenders. A Jacksonville Foreclosure Defense Attorney's may help to ensure your are consistently in contact not only with the lender. Under certain circumstances, a free consultation may be appropriate. To inquire, contact a Jacksonville Foreclosure Defense Attorney's at your earliest convenience.