The nation has been steadily working its way back to a full economic recovery and the housing market is a key factor in order for that to happen. However, there are still certain hurdles that must be overcome.
According to a study by the W.P. Carey School of Business at Arizona State University, states with relatively short foreclosure processes have since moved on from the housing crisis. But, since mortgage laws vary by state, areas with foreclosure delays and long, drawn out processes make it more difficult for housing to recover from the downturn.
Andrea Ghent, an assistant professor at the business school and who led the study, told HousingWire that the key is quick resolution of the situation.
"For example, if a state requires a longer period before foreclosures can happen, then that generally means the homes deteriorate more as the borrowers realize they're going to have to leave and stop taking care of the property. This is bad for the neighbors and the property values," Ghent said.
She added that now could be a good time to decide on a nationwide adjustment to foreclosure laws, so there are not 50 different laws and types of paperwork across the country.
Michael Waldron, an attorney with Ballard Spahr, told the news source that this was not a new discovery and that in fact, varying mortgage laws have existed for some time. While creating a streamlined process isn't impossible, he explained that it would take time to design laws that could account for geographical nuances and needs of each state.
Regardless of where a homeowner is attempting to purchase property, lenders should use mortgage loan software along with an amortization calculator. These tools will ensure that borrowers receive a loan that fits into their financial requirements.