ForeclosureRadar.com released its June 2009 CA Foreclosure Report today. While foreclosures were generally trending upward, Notices of Trustee Sale unexpectedly dropped, apparently due to the new California Prevention Act that went into effect June 16th. Despite the majority of major lenders in the state receiving an exemption from the act, filings dropped by nearly 50 percent as soon as the act went into effect. Filings were climbing back toward previous levels by the end of June so we still expect the law to have little long term impact.
Resources:
Complete text of California Foreclosure Prevention Act
List of exempt lenders under the CA Foreclosure Prevention Act
Removed – not related to blog post.
If you look at when the banks received temporary exemption from the moritorium, it wasn’t until 6/15 for most – explains the “hiccup” and why the NTS started climbing again in the end of June. . . you expected the government to move quickly on granting these exemptions :0)
All the moritoriums are going to be short lived. It’s going to be difficult to prevent lenders which lend money based on collatteral to prevent them from obtaining their collateral in case of default. Their will constantly be moritoriums popping up to try to mitigate the problem, but that is not a way to avoid it.