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While delaying foreclosure on a home does have some potential benefits, for the most part it is counterproductive, according to data released this week by Freddie Mac. The Enterprise notes the time it takes to foreclose on a home is twice as long on average in judicial foreclosure states as opposed to non-judicial states. The state with the longest average time to complete foreclosure was a judicial foreclosure state, New Jersey, at 22 months—which was twice as long as the shortest average foreclosure timeline, 11 months, in two non-judicial states, Michigan and Missouri.
Time-related costs of foreclosure have escalated everywhere since the housing crisis, but especially in judicial states. Prior to the crisis, time-related costs accounted for an average of 12 percent of total foreclosure costs: 16 percent in judicial states and 10 percent in non-judicial. Since the housing crisis, time-related foreclosure costs have soared by 67 percent on the average up to 20 percent of all foreclosure costs with both judicial and non-judicial states figured in. The percentage of increase has been greatest in judicial states, where time-related foreclosure costs have spiked by 106 percent.
While the single-borrower single-family rental securitizations in Kroll Bond Ratings Agency’s rated universe has seasoned only 10 months on the average, the properties that have securitized are appreciating in value, according to KBRA’s Single-Borrower SFR Comprehensive Monitoring Report. The 23 transactions in KBRA’s rated universe were issued by eight sponsors that own 157 thousand properties. Approximately 91 thousand of those properties have been securitized and have appreciated by an average of 8 point 7 percent since the transactions’ respective issuance dates.
