New Analysis Seeks to Reduce Foreclosure Timelines
Rates can vary almost 200%
Oversite® Data Services, a subsidiary of ALAW and the leading national provider of docket-based legal compliance and management solutions, today released a white paper that demonstrates how court data-based management of foreclosures cases can reduce foreclosure timelines and improve portfolio management.
The analysis is based on a dataset of over 50,000 foreclosure loan files from one Florida County and includes empirical findings that establish benchmarks for foreclosure management along a number of metrics. Oversite is able to add legal intelligence to these benchmarks to generate target timelines consistent with 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 for 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.
“Our analysis shows that it is possible to quantify a number of factors impacting foreclosure timelines that can then be used to benchmark foreclosure management and more accurately estimate foreclosure timelines,” said Oversite CEO, James Albertelli. “Oversite’s docket-data based technology platform provides the transparency needed to better manage third parties through a data-based systematic process, minimize timelines and reduce avoidable risks.”
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.