The Foreclosure Report – April 2011
Foreclosure filings decrease to lowest level in years, while foreclosure cancellations increase
Foreclosure activity slowed in April. Foreclosure filings were down in Arizona, California, Nevada and Washington, with Oregon being the sole exception where filings were up. California filings were down to levels not seen since late 2008, when governmental intervention caused a temporary but massive drop in activity. Foreclosure sales saw similar declines throughout our coverage area, except Washington. Notably, cancellations were up significantly across the board, leaving fewer propeties scheduled for trustee sale.
“The drop in filings, and the rise in cancellations, is surprising,” says Sean O’Toole, CEO and Founder of ForeclosureRadar.com. “Banks have had time to resolve robo-signing issues, so we should be seeing exactly the opposite results, with lenders starting to catch up from recent delays.”
Notice of Trustee Sale filings were down 27.9 percent in April 2011 from the prior month, falling to the lowest point we’ve seen since we began tracking Arizona in August 2009, and down 41.5 percent from the same time last year. There was a similar dip in foreclosure sales, with a 22.2 percent drop in sales Back to Bank and a 15.4 percent decline in Sales to 3rd Parties month-over-month. Cancellations rose 18.8 percent month-over-month, which together with the drop in filings led to 10.6 percent fewer properties Scheduled for Sale.
Foreclosure filings in California fell to lows not seen since the fall of 2008. Notice of Default filings dropped 25.8 percent, and Notice of Trustee Sale filings fell 10.9 percent from March. On a year-over-year basis foreclosure filings were down as well, with Notice of Default filings down 28.0 percent and Notice of Trustee Sale filings falling 31.2 percent from April 2010. Foreclosure sale cancellations rose 27.0 percent from March. Acivity on the courthouse steps slowed from the prior month, with 17.2 percent fewer sales Back to Bank and a 15.8 percent drop in properties purchased by 3rd Parties, typically investors. The average Time to Foreclose continued to climb, increasing 3.3 percent to 312 days.
Notice of Default filings decreased 17.8 in April from the prior month, falling to the lowest point seen since we began tracking Nevada foreclosure filings in August 2009. Notice of Trustee Sale filings fell 23.7 percent month-over-month. Activity on the courthouse steps was mixed, with sales Back to Bank down by 2.7 percent, yet Sales to 3rd Parties, typically investors, were up 6.9 percent from March, and 81.0 percent from April 2010. Cancellations were 14.0 percent higher month-over-month, and 69.5 percent year-over-year.
Oregon saw a substantial jump in foreclosure filings, with Notices of Default up 236.2 percent from March. Much of this increase came from ReconTrust, a subsidiary of Bank of America, filing 2,840 new Notices of Default, considerablly more than the 131 it filed in the first 3 months of the year. Properties sold Back to Bank fell 17.8 percent, however, Sales to 3rd Parties increased 38.7 percent month-over-month.
Washington saw a 12.1 percent slip in Notice of Trustee Sale filings from March, and were down 25.4 percent year-over-year. The courthouse steps were active with properties sold Back to Bank up 38.7 percent, and those Sold to 3rd Parties up 40.5 percent from March.
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