Before you start thinking recovery, remember this the FOURTH year where California has a ton of defaults. Also, there also there is another wave defaults coming in 2012.
“A lot of theories are being floated as to why the numbers are down. Bank policy changes. Legal challenges. Politics. Holding back temporarily so as not to flood the market. The fact of the matter is that no one really knows, outside of lending and servicing industry insiders," said John Walsh, DataQuick's president. "One thing is certain: Homeowner distress spreads fastest when home price declines are steepest. And it now appears likely that, barring some new economic shock, the worst of the price declines are behind us."Read it all