Study shows rates can vary almost 200% among servicers

Active Management of foreclosure cases based on court data and analytics can reduce foreclosure timelines and improve portfolio management. Our findings provide data to establish benchmarks for foreclosure management, with recommendation for the most efficient possible legal strategy and execution for a case.

This whitepaper calculates variation in foreclosure management outcomes, controlling for year of foreclosure start, county and state.  The data confirms a number of broad trends, including:

  • Variations in foreclosure timelines by servicer, controlling ebook_blank_picfor geography and year of foreclosure start.
  • Proactive foreclosure management can reduce the number and timelines of outlier cases.
  • Cases with foreclosures and bankruptcies present significant opportunity for proactive case timeline management.
Key analytics supporting these conclusions are:
  • Average servicer timelines, controlling for state, county and year of foreclosure start varied up to 192% among servicers between 2007 and 2013. 
  • The percentage of open cases aged more than 540 days 
  • as of 1/1/2014 varied by up to 300% among servicers.
  • The number of LOP filings among servicers varied by over 500%, controlling for year of foreclosure start.
  • Cases with a Lack of Prosecution (LOP) filing had an average foreclosure timeline of 308 days longer than cases with no LOP, AC or BK filing.
  • Cases with an Amended Complaint (AC) filing had an average foreclosure timeline of 439 days longer than cases with no LOP, AC or BK filings.
  • Cases with a Bankruptcy Discharge (BK) filing had an average foreclosure timeline of 448 days longer than cases with no LOP, AC or BK filings.

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