Number: RL34232
Title: The Process, Data, and Costs of Mortgage Foreclosure
Authors: Darryl E. Getter, N. Eric Weiss, and Oscar R. Gonzales, Government and Finance Division; David H. Carpenter, American Law Division 
Abstract: The passage of legislation such as P.L. 110-289, the Housing Rescue and Foreclosure Prevention Act of 2008 (Representative Barney Frank et. al.), and the introduction of numerous bills such as H.R. 5818, the Neighborhood Stabilization Act of 2008 (Representative Maxine Waters et. al.), serve as evidence of the concern in the 110th Congress over recent foreclosure activity. This report provides a description of, as well as some brief analysis of, foreclosure and related issues generated by the behavior of U.S. housing and mortgage markets. Specifically, this report explains the foreclosure process, both from the point of view of a traditional financial lending institution, and from the viewpoint of securitization when loans are sold in secondary markets. The decision by the servicer to foreclose is also discussed, as are foreclosure data sources and recent foreclosure trends. Finally, this report examines estimates of average foreclosure costs and relevant computational issues.
Pages: 13
Date: October 20, 2008