Foreclosures are getting faster at JPMorgan Chase and Wells Fargo. The two big banks trimmed their foreclosure timelines by as much as 100 days in the third quarter of 2011, helping to work through major backlogs of foreclosed loans, according to a Moody’s Investors Service report. But while foreclosure sales are getting speedier, the report warns that there’s still a long way to go in working through large inventories of REOs that are continuing to slam the nation’s banks.
Chase averaged 264 days from referral to foreclosure sale in the third quarter for subprime mortgages — a big drop from the 412 days it averaged three months prior to that. Chase boasted the shortest time of any of the big five mortgage servicers. Wells Fargo also greatly reduced its foreclosure timeline to 314 days from 454 days compared to the previous quarter.
"Servicers completed their robo-signing reviews and are no longer holding up foreclosure sales, which is clearing out their pipelines somewhat," according to the Moody's report. "Chase and Wells decreased their foreclosure sale timelines significantly."
Some mortgage lenders, however, are still plagued by delays. For example, GMAC, part of Ally Financial, took an average 550 days to move a loan through foreclosure, according to the report.
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