Although some states, including Florida, have put forth measures to speed up the process, and the federal government has been more lax in the requirements, the extensive requirements have created a log jam of homes. Florida is one of the states that have judicial factors involved in the process, resulting in an even greater accumulation than other states. According to RealtyTrac, in Florida it takes almost 2 ½ years, more than twice the nationwide average of just over a year. The longer the foreclosure process, the more fees, taxes and penalties add up. Some lenders, including Fannie Mae and Freddie Mac, are calculating the cost of the lengthy process and building it into the mortgage rates in these states.
In addition, during this time period, some of the homes sit empty and become in greater disrepair. Some homeowners frustrated with the situation actually damage the home before their exodus. As a result, home buyers wishing to purchase a short sale or foreclosed property are losing their patience. Those that can wait it out, find the home isn’t the bargain they had hoped for.