Sociable

Thursday, March 10, 2011

Foreclosure activity drops sharply nationwide

This drop is not due to improving economic conditions or homeowners paying their mortgage.  It mainly to due bank and lenders not pushing through foreclosures before a legal settlement with State AG's concerning servicing.  Banks did not file the proper documentation or obtain the legal definition of consent before starting foreclosure proceedings.
Big banks put the brakes on foreclosure activity last month as the American foreclosure system faced a major overhaul and homeowners challenged their lenders in court.
The decline in foreclosure actions — from default notices to bank repossessions — dropped the most in states where a court order is required to take back a home; such so-called judicial states do not include California.
Nationally, foreclosure activity fell 14% from January and 27% from February 2010, according to RealtyTrac. That is the largest year-over-year decline since the Irvine data firm began keeping statistics in 2005.
Evidence of a foreclosure slowdown comes as state attorneys general and federal regulators push the banks to revise the way they service loans, consider troubled borrowers for potential mortgage relief and conduct their foreclosure proceedings. Officials last week sent the nation's biggest mortgage servicers a 27-page list of terms outlining these demands.
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