Foreclosure Starts Rise 20 Percent in California

March 16, 2010 No Comments »

foreclosure sign

Notices of default, the first step of the foreclosure process, increased 19.69 percent in California from January to February, according to ForeclosureRadar.com.

The company, which claims to track every California foreclosure, said NODs increased to 31,004 during the month after declining for four straight months.

However, such filings were 37.74 percent lower than levels seen a year earlier, likely thanks to a number of loss mitigation programs currently in place.

Filings of Notices of Trustee Sales, which set the date and time of a foreclosure auction, also increased month-to-month, rising 3.6 percent to 28,195.

However, foreclosure sales, which are the actual loss of a property to foreclosure, fell 11.9 percent in February.

“The disconnect between delinquencies, and foreclosure sales continues to widen,” says Sean O’Toole, Founder and CEO of ForeclosureRadar.com, in the report.

“While efforts to slow foreclosures are clearly working, it remains unclear that anything has yet addressed the core problem of excess household mortgage debt.”

Foreclosure inventory (shadow inventory) remained relatively flat month-to-month because the number of properties exiting the foreclosure process nearly matched the number of new Notice of Trustee Sale filings, though scheduled sales are up 126.34 percent from a year ago.

The hope is that the many loan modifications being offered to scores of borrowers actually stave off foreclosure, instead of simply delaying the inevitable and exacerbating matters.

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