Lenders May Be Choking On Foreclosures As Some Homeowners Admit To Stiffing Lenders For 6-8 Months Without Receiving Default Notice

In Southern California, North County Times reports:

• Some homeowners in the area have gone months without paying their mortgages and have yet to receive a foreclosure notice ---- a development that suggests banks are overloaded and that also might mean foreclosure reports are understating the region's housing crisis.

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• Several homeowners in the area interviewed last week said that they stopped paying their mortgages six to eight months ago and still have not received a notice of default, which typically comes by the fourth month of nonpayment.

For more, see Banks waiting longer to foreclose (Homeowners report not paying mortgages for eight months with no foreclosure).