Sunday, July 19, 2009

CA Foreclosure Activity Remains High Despite Moratorium Efforts

The number of new notices of default recorded in California rose to approximately 46,000 in the month of June up from 42,000 in the month of May. That number is up from approximately 10,000 2 years earlier. It is too early to see what effect the California foreclosure moratorium law will have in California, but due to the numerous loopholes in the law, it is unlikely that it will have any effect.

Although lenders have ramped up efforts and staff to implement loan modifications, they are still moving the foreclosure process forward even while reviewing a borrower for a potential modification. Borrowers must move quickly to pursue all legal options because the lenders will move forward with scheduling the sale of their home despite their claims that they will work with them.

It is likely that the number of notices of default and notices of sale will continue at their existing levels for the rest of this year.

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