Foreclosure Activity Continues to Fall

The “foreclosure wave” many predicted at the end of last year is beginning to look more like a drought, as foreclosure sales dropped significantly in February. Although sales to 3rd Parties, typically investors, were down month-over-month, as a percentage of all sales 3rd Parties purchased a record 37.6 percent of foreclosures, up from 20.3 percent a year earlier, and just 2.2 percent in February 2008.

Further eliminating any possibility of a foreclosure wave for months to come, was a substantial drop in new foreclosure filings in California, Nevada, and Washington. Arizona saw a modest increase in foreclosure starts, while Oregon jumped a dramatic 39.4 percent. Despite the size of the increase, it simply offset a drop in January, and showed little change in comparison to earlier months. Nevada remains far below the average number of foreclosure starts; and the dramatic changes to their foreclosure laws will likely drag out the Nevada foreclosure process for years to come.

Unlike years past, February’s drop in sales was not due to the short month. Thanks to the Leap Year, California had only one less business day than usual in February (because of the Abraham Lincoln’s birthday observation). The other states do not observe Lincoln’s birthday, and so had the same number of business days as other months.

“Government intervention into the foreclosure crisis has clearly succeeded in slowing foreclosures. Unfortunately, it has also largely failed to deal with the real problem–negative equity. While principal balance reductions and short sales are friendlier than foreclosures for eliminating negative equity, foreclosures are an extremely effective, if perhaps crude, cure as well.” Stated Sean O’Toole, Founder & CEO of ForeclosureRadar. “While I believe banks should be strongly encouraged to work with homeowners who fall behind, there will be uncooperative homeowners. Passing laws to essentially eliminate foreclosures, as they appear to have accomplished in Nevada, and are now contemplating with similar draconian measures in California, is likely to do more harm then good. The pendulum of regulation is once again swinging too far.”

CLICK HERE for our complete February 2012 Foreclosure Report

9 thoughts on “The Foreclosure Report – February 2012

  1. The State of Nevada has not eliminated foreclosures. They have stopped the fraud and robosigning from allowing banks to steal a home. I hope California follows suit. If a bank cannot foreclose legally then they have no business doing so and must then work with a homeowner to find a workable solution for both. Allowing our banks to be above the law has ruined neighborhoods, communities, families and our economy. It is time for the laws to be enforced and only then can we start to heal.

    • Billy Forman says:

      Yes, yes the banks were streamlining the foreclosure process. But they only foreclose when the loan is not paid.

      Has everyone forgotten. These people borrowed the money. They promised to pay it back. Now , because they can’t or won’t doesn’t take away from the fact that they owe the money.
      Yes, everyone is mad at the banks. They forced us to take the money. BUT, we did take the money and promise to pay it back. What are we supposed to do “Forget about it”.

      • I have a small problem, most of the people that took out these loans did not read, the small writing. I quit the industry when I seen, a loan rep approve a loan for $3000/month and the person was only making $9 an hour because she had an A rating credit. There were promises of “…don’t worry….you can always refinance in 2 years.” Promise after promise, lie after lie, commission after commission. I think there is an argument concerning this fact because a lot of people were scammed. No we aren’t supposed to forget about the loan, but they should be a little more lenient because both parties are at fault.

  2. Regardless of what they borrowed or if they stop paying these homeowners are owed the right to the due process of the law. There is never an excuse for fraud. PERIOD!
    The homeowners are due the right to negoitate with the owner of their loan…the investors but the banks have sold these loans so many times they do not know who owns what…which means the investors are being denied their due process of not having the opportunity to work with the homeowner to save their investment.

  3. Pingback: Lonny Savin

  4. Pingback: Business News

  5. Pingback: San Francisco Auto Insurance

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

Start Your Free Trial Today!

Website by Espionaut and SW Programming

Share this Post!

×