Little Change in California, as Nevada and Washington Foreclosure Starts Plummet
Foreclosure Starts in California were little changed this month, after a dramatic increase in August and subsequent fall in September. Other California foreclosure activity was also little changed in October. California foreclosure investors gained traction with 9.9 percent more properties sold to third parties in October, representing a record 28.8 percent of all foreclosure sales. A year ago just 16.9 percent of foreclosures were purchased by third parties.
Nevada Foreclosure Starts plummeted in reaction to the passing of AB 284, which imposed stricter requirements on filing new Notices of Default, and seems to have specifically targeted ReconTrust - the trustee that handles all Bank of America and Countrywide foreclosures - by prohibiting a trustee from being owned by the foreclosing lender, as ReconTrust is. Washington Foreclosure Starts continued their decline after being impacted by a lawsuit filed by the State Attorney General against ReconTrust in August alleging the trustee was illegally foreclosing on properties in that state.
Elsewhere, Arizona foreclosure starts are at the lowest levels since spring of 2009, with just 6,133 Notice of Sale filings in October. This is seen throughout the state, as cancellations, properties sold to the bank and those sold to third parties are all down. Oregon Foreclosure Starts continue their drop from the April spike, down 20.6 percent in October.
"I find it amazing that so many believe that legislation and lawsuits targeting the foreclosure process are a win for homeowners." stated Sean O'Toole, Founder and CEO of ForeclosureRadar. "The reality is these delays help the banks by allowing them to keep bad loans on their books at inflated values, while leaving in limbo the millions of homeowners that are already in default. The housing market will not recover until we move beyond these delay tactics."
Comments
Why does your service show very fer preforclosures in California?
Hi Dave,
In our charts we show all recorded Notice of Defaults (P-Preforeclosures) by month. If you have a subscription to our site you can login and see a complete database of all recorded Notice of Defaults and Notice of Trustee Sales (A-Auctions). You are always welcome to contact support@foreclosureradar.com if you have specific questions about the service and understanding our data.
Hey guys,
Love my account..getting great responses to my marketing. I have a question about foreclosure outcomes. In the pre foreclosures listed in the site, there are "projected sale dates". Are those dates based on the 3 month and 21 day legal timeline rather than actually scheduled by the bank/trustee or actual dates scheduled and listed in the initial filing?
Thanks!
Rob
Hi Rob,
Thanks for sharing!! And thanks for asklng this question.
When the Notice of Default is filed we show a PROJECTED sale date which is 120 days from the recording date of the Notice of Default. This is NOT an actual sale date. We use this date so that you can easily see the approximate date the property COULD go to sale if the trustee records the Notice of Trustee Sale at the end of the 90 day default period. We use 120 days as just a rule of thumb. The trustee rarely records a Notice of Trustee Sale on the 91st day and once they do record the Notice of Trustee Sale that sets the sale date 20 days later which is why we use 120 days. (If you add 90 days plus 20 days you get 110 days.) If you are tracking Notice of Defaults the projected sale date lets you know that you are getting close to the time that the property could go to sale.
Keep in mind that the Notice of Trustee Sale is posted, published and recorded 20 days prior to the sale. If you are working with a homeowner it is reasonable that they would know about the Notice of Trustee Sale before anyone else because the notice is being taped to the door of the house. You can let them know at the end of the default period that this notice may be posted at any time. I always hear from agents that are frustrated that their clients know about the trustee sale before they do. If the system is working properly and the trustee is posting the notices in accordance with the laws of the state then the homeowner should know about the sale before the agent.
I hope this helps!!
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