2011 Foreclosure Activity Ends With a Whimper

Foreclosure Starts dropped significantly throughout our coverage area with the exception of a modest increase in Oregon. Foreclosure Sales were mixed, and down far less than we expected given lender announcements of holiday moratoriums. California and Washington actually saw modest increases. Also surprising was a drop in the time to foreclose across most states, since foreclosures typically get extended over the holidays.

An event of particular note this month was an unexpected spike in the Cancellations of foreclosure in California, with an increase of 45.8 percent from the prior month. Almost the entire increase occurred in Los Angeles County where over 5,000 sales were cancelled. This looks to have been caused by a city ordinance eliminating the trustee sale location in Norwalk. We expect many of the cancelled sale dates to be reissued at a new location within the county soon.

Nevada’s new foreclosure law, which caused Foreclosure Starts to plummet in October, are now impacting Foreclosure Sales as well. We’ve seen foreclosure activity bounce back after lenders deal with state law changes in the past, but its less clear that we’ll see such a recovery in Nevada anytime soon.

“Nevada’s new foreclosure rules appear on track to bring a near complete halt to foreclosures in that state.” stated Sean O’Toole, Founder and CEO of ForeclosureRadar. “In the near term this will certainly help homeowners who were facing foreclosure, eviction, and potentially deficiency judgements. Longer term, we believe there will be unintended consequences for the state as business declines for the many real estate related companies that would normally service, resell and finance those foreclosures. While we hope the rules will lead to better lender accountability as intended, we fear that they will instead lead to higher unemployment and less certainty as to when the cloud of ‘shadow’ inventory hanging over the state will be lifted.”

CLICK HERE for our complete December 2011 Foreclosure Report

17 thoughts on “The Foreclosure Report – December 2011

  1. Mike: The explanation for the LA County cancellations? The county has eliminated the courthouse in Norwalk as an auction site. All those thousands of files must now be cancelled, refiled and reposted noting that the auction will now take place in Pomona instead. The Norwalk courthouse, for years, has been a source of complaints for parking, access, trash/mess issues. So starting around October and November, you started seeing tons of cancellations on Norwalk files as trustees began the process of moving those files to the Pomona auction. This migration will take many months to work through.

    • Thanks Brad. Just talked to our research folks and they looked at me like, yeah, duh, where have you been. Can’t believe I forgot to check with them – sometimes I get caught up in looking at the data and forget to check the basics. Sorry I missed it, and thanks again for having our back. We’ve updated the report above.

  2. Pingback: The Foreclosure Report – December 2011 | US Foreclosure Homes, Sales & Listings

  3. Indeed a very nice post. I am also associated with real estate, foreclosure Los Angeles County, California taxes, property, and industry. I love to read new stuff on this subject, and I hope you will be adding new and fantastic post on property services . Thanks for writing such a wonderful post

  4. Here’s something I haven’t seen addressed yet. When a big bank like, say, B of A, forecloses on a property, they can easily skim off the mineral rights when that property eventually sells. Hmmmm….. nice little perk for the banksters, right?
    May I offer a bit of free advice to anyone considerin¬g buying/inv¬esting in a foreclosur¬e property?

    Read your title policy very, very carefully.

    Some questions you might ask yourself as you review that little gem:
    1) Who owns the title company which is insuring title to the property I’m buying? (hint: might be the seller/ban¬k)
    2) What are my options before OR after closing if I discover the title is, um, fatally clouded? (hint: you probably have none)
    3) Who does the title policy protect, me or the bank/selle¬r? (hint: if the bank owns the company that wrote the title policy, what do you think?)
    3) Will the mineral rights convey to me with the property?

    I’d love to hear from some people with real experience in this area. I’m just a homeowner fighting for my life out here, and I’m trying to figure out the bank’s end game in all of this. Following the money led me down this dark little side street….¬….

  5. As a New York foreclosure lawyer it’s interesting to read foreclosure updates and news from other states. It’s important to note how foreclosure affects the people other than those who are are foreclosing on their home.

      • 276WONDERFUL Post.thanks for share..more wait .. ?There are certainly a nuembr of details like that to take into consideration. That may be a great point to convey up. I provide the ideas above as normal inspiration however clearly there are questions just like the one you convey up where the most important factor will probably be working in honest good faith. I don?t know if greatest practices have emerged round issues like that, but I am sure that your job is clearly identified as a fair game. Each boys and girls feel the impact of just a second pleasure, for the rest of their lives.

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