The Morning Report
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While the number of homes entering the final stage of foreclosure hit another all-time record in July, the number of homes entering foreclosure actually declined.
In addition, even this decrease may be temporary. A recent Wall Street Journal article notes the significance of California’s recent foreclosure legislation:
A new state law in California requires lenders to wait an additional 30 days after a homeowner misses the first payment before filing a default notice and use more “due diligence” to attempt a loan modification. The law took effect July 8.
The article goes on to cite some experts as believing that the new law has simply caused a temporary respite in new foreclosures, and that the numbers will surge back up again within a few months as delayed foreclosures eventually get processed.
If this explanation is correct, then we can probably expect further decreases in NODs for at least another month and a corresponding increase soon thereafter.
— RICH TOSCANO