New Foreclosure Activity Plunges


Discovery Bay, CA (PRWEB) October 14, 2008

ForeclosureRadar, the only site that tracks each and every California foreclosure with daily auction updates, nowadays issued its California Foreclosure Report for September, 2008. Notice of Default filings, which indicate the start of the foreclosure procedure, fell 61.eight percent in September due mostly to new legislation that went into effect on September 8th. California State Senate Bill 1137 imposes important new requirements on lenders prior to filing for foreclosure, and the drop indicates that the lenders had been not prepared for the effect. The bill also effected new Notice of Trustee Sale filings, which dropped 47.3 % from August. The bill did not straight effect foreclosure sales even so, they nevertheless fell by 12.four percent.

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Higher-level findings incorporate:&#13

Only 16,352 Notices of Default were filed in September, down from 42,790 in August, a reduce of 61.8 % from August 2008, and a lower of 36.4 percent from a year earlier.&#13
Notices of Trustee Sale filings decreased 47.3 percent from August, to a total of 19,116 filings. In spite of the significant decline, filings improved 33.9 % from September 2007.&#13
Properties taken to sale at auction increased 163.two percent from the prior year, to 23,409 sales, with a combined loan balance of $ 9.75 Billion. This represents a 12.4 percent drop from August 2008.&#13
Lenders took back 95 % of the properties taken to auction, with a combined loan worth of $ 9.19 Billion. Third party purchases were flat from the prior month, but improved slightly as a percentage, due to the decline in sales activity.&#13
“CA State Senate Bill 1137 has rendered evaluation of existing activity against prior foreclosure levels useless in understanding industry conditions,” mentioned Sean O’Toole, founder of ForeclosureRadar. “What is essential to watch now, is how speedily lenders and trustees adjust to the new law. While it is unlikely foreclosures will return to preceding levels, offered the new needs we expect SB 1137 to have no long term impact beyond delaying the foreclosure method for home owners, and slowing the all round recovery.”&#13

The intent of CA State Senate Bill 1137 is to minimize foreclosure prices with one particular of the specifications being that lenders make speak to with home owners prior to filing a foreclosure, to make certain that they are aware of all their options. The bill calls for lenders to make a series of attempts to speak to property owners, and then wait 30 days following either contacting the owner or fulfilling the needed steps ahead of filing the foreclosure notice. The bill particularly looks to encourage loan modifications as an option to foreclosure. The state, however, cannot force lenders, typically operating beneath Federal Law, to modify an existing loan.

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“Offered the significant adverse equity now occurring in most California foreclosures, modifying loans to cost-effective levels either needs huge principal balance reductions, or extending the unsustainable teaser rates that designed the foreclosure crisis in the first place,” continued O’Toole. “Wide scale adoption of massive principal balance reductions also pose significant risks, as they are probably to encourage non-defaulting home owners to default in the hopes of securing related reductions. As such, either kind of loan modification is most likely to result in improved default, and/or foreclosure activity in the future, a consequence clearly not intended.”

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Average discounts presented by lenders on the outstanding loan balance at foreclosure auction averaged 37.4 % statewide with 36 % of properties taken to auction becoming offered at discounts of 50 % or a lot more.

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Small has changed at the county level with the leading six counties sustaining their rank from the prior month, and only relatively tiny counties seeing significant modifications in their overall ranking. Opening bid discounts were highest in best ranking counties, with discounts from the loan amount of greater than 40 % in the top seven counties.

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California Foreclosure Report Methodology – See table&#13

Rankings are based on population per foreclosure sale. NOD indicates the quantity of Notices of Default that had been filed at the county, and NTS indicates filed Notices of Trustee Sale. Sales indicates the quantity of properties sold at foreclosure auction. Percentage adjustments are primarily based on monthly Sales. The data presented by ForeclosureRadar is based on county records and individual sales final results from day-to-day foreclosure auctions all through the state – not estimates or projections.

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About ForeclosureRadar.com&#13

ForeclosureRadar is the only net website that tracks every single foreclosure in California with day-to-day updates on all foreclosure auctions. ForeclosureRadar features unprecedented tools to search, handle, track and analyze preforeclosure, foreclosure auction, short sale and bank owned actual estate. The net web site was launched in May 2007 by Sean O’Toole, who spent 15 years building and launching computer software firms just before getting into the foreclosure company in 2002 exactly where he has effectively purchased and sold far more than 150 foreclosure properties. ForeclosureRadar is an indispensable resource for genuine estate agents, brokers, investors, lenders, mortgage brokers, attorneys and other real estate professionals specializing in the California actual estate industry.

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