Reposession Backlogs: Could Take Years

Are you worried about the bank repossessing your home? A report by The Daily Mail states that "Homeowners on the brink of having their homes repossessed may be offered an unexpected reprieve, after it emerged that it may take up to 62 years for banks and courts to process the backlog of claims."

Analysts have calculated that at the current rate of repossession, "it would take lenders in New York state 62 years to process the 213,000 threatened houses - the longest in the country."

The states who use a court based repossession process have the longest backlogs. Colorado does not use this system and only has about a 3 year backlog.

Nationally, repossessions are down by a third. Colorado still ranks among the top 10 states in foreclosure with one out of every 518 housing units affected.

The processing delays at banks skew the numbers of houses facing repossession. State filings in Colorado dropped 4 percent in May from the month before. "The most recent report on foreclosures from the Colorado Division of Housing," reports the Denver Business Journal, "showed there were 2,002 foreclosure filings in May, down 24 percent from May 2010."

photo credit: sachab