In a further indication of how far-reaching and deleterious the foreclosure crisis has become, homeowner groups have taken to suing banks in order to reclaim properties from delinquent homeowners, Bloomberg reports.
Across the country — and especially in states with high foreclosure rates, like Florida, California and Nevada — homeowner and condo associations are being forced to contend with homeowners living in properties they can’t pay for, and banks that won’t take action unless prompted by litigation.
Some 60 million Americans, or about one in every five, live in properties with homeowner or condo associations, according to Bloomberg.
The report underscores how deeply the foreclosure crisis has distorted American housing. In July, the number of homes entering foreclosure fell to a 44-month low, a statistic that says less about the solvency of homeowners than about the massive backlog of foreclosed properties that have yet to be processed and repossessed. In some states, it could take years or even decades to clear the docket of all the houses currently in foreclosure.
Article is from AOL Real Estate.