Just a month ago, Foreclosure Radar reported that foreclosure filings in California dropped to levels not seen since since late 2008. Numbers released by DataQuick today validate the info. The number of California homeowners receiving default notices fell 15.8% year-over-year in the first three months of 2011 as servicers waded through new, complicated policies that are hindering their ability to foreclose, DataQuick said Tuesday.
Both sources attributed the decline of the default notices to the complicated policies. Regardless of the reason, the result is less default notices will lead to less foreclosures on the market in the near future. Given that the lending standards tightened a lot after 2008, if the current policies on default notice and foreclosures do not change, you may see the trend continue.
Below are a few interesting points from the story:
- Based on DataQuick stats, most of the California loans in default were originated between 2005 and 2007 — a peak period for lax underwriting.
- On a servicer-by-servicer basis, most of the active loans in the foreclosure process last quarter were tied to JPMorgan Chase , Wells Fargo and Bank of America
- The trustees pursuing the most foreclosures as part of their role in handling securitized mortgages included ReconTrust Co. for Bank of America and MERS, Quality Loan Service Corp. for Bank of America, California Reconveyance Co. for JPMorgan Chase, NDEx West (Wells Fargo) and Cal-Western Reconveyance Corp. for Wells Fargo.
Here is the link to the full story: http://www.housingwire.com/2011/04/19/california-mortgage-default-notices-drop-15-8-reach-4-year-low
