Report Details Pipeline Ratios of Judicial and Nonjudicial States

32 month nonjudicial pipeline

The Lender Processing Services (LPS) Mortgage Monitor produced a report in January that addressed unintended consequences of legislative or judicial action in a few states. The report includes a discussion of nonjudicial states which were effectively operating as judicial – such as Nevada – as a result of legislation or case law.

LPS Senior Vice President Herb Blecher noted: “On average, pipeline ratios -- the rate at which states are currently working through their existing backlog of loans either in foreclosure or serious delinquency -- are almost twice as high in judicial states than nonjudicial states. At today's rate of foreclosure sales, it will take 62 months to clear the inventory in judicial states as compared to 32 months in nonjudicial states. A few judicial states -- New York and New Jersey in particular -- have such extreme backlogs that their problem-loan pipelines would take decades to clear if nothing were to change.”

Read LPS’ Mortgage Monitor Report

Read Mortgage News story on Unintended Consequences of Judicial vs Non-Judicial Foreclosure