The speed at which a market recovers depends on the terms of the homes prices as well as the real estate activity in the area. It also depends on factors like whether the homes are part of the judicial or no judicial foreclosure states.
Judicial foreclosure states are ones that require certain financial firms to handle all of the details of the default proceedings in the court of law. The nonjudicial foreclosure states on the other hand offer a certain set of rules and processes. These processes are streamlined and designed to occur outside of court.
According to some reports the nonjudicial foreclosure markets have a better stabilization of their prices than those that are handled in the court system. Many believe that the difference in the procedures will always affect house trends on a state level. The nonjudical states are outperforming the judicial states on a steady basis.
Those states that have high burn through rates have a way of tightening up on their supply conditions which also allows them to support price growth. The states who have a low burn through in judicial foreclosure states have to keep houses on the market for a longer period of time and are constantly pushing own the prices trying to get the product sold.
Economics reports are claiming that the nonjudicial foreclosure states help local economies re-stabilize the markets in a very efficient manner. Some would argue that that there are other factors and elements other then the type of foreclosure state the property is located in.
There are other economics that refuse to classify one method over another. They feel that the overall truth is there are a lot of challenges when one is moving through the judicial system. Although this method can be time consuming they feel that there are certain protects that come along with it for all parties involved. No matter how fast or slow a house moves through the system the most important thing is the home owner having a fighting chance to save their home.
It will take time and effort on everyone’s part to save the housing market and help it recover. Those states that have a high foreclosure rate are not showing growth. Those states that do not involve the judicial system are allowed to have the time to help the home owners explore the options that will allow them to save their home.
Everyone has their own opinion about these foreclosure process and I am sure it will great depend on how the process could affect them personally. Benefits can be seen on both sides and still leaves us with the question: What may delay some housing market’s recovery?