Banks seize fewest houses in 17 months
May 19th, 2009, 12:09 pm · 4 Comments · posted by Mathew Padilla, Reporter
Banks in April took 482 houses and condos in Orange County away from delinquent borrowers, the lowest total in 17 months and down 46 percent from a year ago.
And lenders filed 2,947 notices of default, which initiate the foreclosure process, down 15 percent from March, but up 13 percent from a year ago.
The decline in foreclosures could be temporary.
Foreclosure totals have been lower since September 2008, when a state law was enacted forcing lenders to discuss foreclosure prevention with borrowers at least 30 days before filing a default notice. The law impacts loans made at the end of the housing boom.
Notices of default also dropped in September 2008, but clearly have rebounded, despite a dip last month. March's total of 3,485 NODs was the highest in at least 17 years.
Record NODs suggest the state law has mostly delayed foreclosures, not prevented them. Banks typically file a notice of default after a borrower misses three or more monthly payments.
Also, private foreclosure moratoriums by mortgage companies earlier this year have ended. (For more on foreclosures, including a look at inventory by ZIP, CLICK HERE. And to see median pricing and sales data for April, CLICK HERE.)
Here's a table showing defaults and foreclosures (Forec. in the chart) going back to 2007.
| Month | Defaults | Forec. | Defaults | Forec. | Defaults | Forec. |
| January | 2,200 | 835 | 2,352 | 802 | 847 | 152 |
| February | 2,742 | 770 | 2,254 | 733 | 811 | 164 |
| March | 3,485 | 541 | 2,476 | 698 | 986 | 204 |
| April | 2,947 | 482 | 2,598 | 898 | 855 | 234 |
| May | 2,468 | 1,131 | 1,021 | 276 | ||
| June | 2,498 | 1,213 | 1,108 | 311 | ||
| July | 2,337 | 1,362 | 1,167 | 367 | ||
| August | 2,484 | 1,441 | 1,476 | 469 | ||
| September | 871 | 1,194 | 1,239 | 444 | ||
| October | 925 | 737 | 1,448 | 530 | ||
| November | 1,205 | 633 | 933 | 364 | ||
| December | 2,351 | 718 | 1,895 | 644 | ||
| TOTAL | 11,374 | 2,628 | 24,819 | 11,560 | 13,786 | 4,159 |
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Posted in: Defaults & Foreclosures • Meltdown • distress |
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