Foreclosure Activity Shows Mixed Results
May 2012 Foreclosure activity was mixed with lenders more likely impacted by local market conditions then any overall trends. In Arizona, Foreclosure Sales were up 30.1 percent over last month but still down 39.2 percent vs. May 2011. In Oregon, Foreclosure Sales were down 21.3 percent over last month but flat vs. May 2011. In California, Foreclosure Sales were up 6.1 percent vs. previous month, driven by Sales to 3rd parties that were up 14.0 percent. Nevada’s Time to Foreclose is continuing to increase, up 9.4 percent to an all time high of 464 days. This is due to the Foreclosure Fraud Reform Law (Assembly Bill 284) that went into effect October 1, 2011.
In California, three Senate Bills under the Homeowner Bill of Rights are being actively debated by the legislature. While Senate Bill 1473, Senate Bill 1474, and Assembly Bill 1950 have already been passed, they should have little impact on foreclosure activity throughout the state. However if passed, two of the three remaining bills (Senate Bill 1470 and Senate Bill 1471) will significantly impact the Foreclosure Marketplace.
“”I continue to find the push to “Stop” foreclosures, as we are currently seeing play out in the CA Legislature, ludicrous. The real problem is negative equity, and the only thing stopping foreclosures will accomplish is insuring that we are stuck with the negative equity problem for far longer then necessary.” stated Sean O’Toole, Founder & CEO of ForeclosureRadar. “I completely get why folks are mad at both the banks and the situation. However, stopping foreclosures will lead to a much longer economic recovery, increased blight, fewer jobs, lower property tax receipts, and fewer opportunities for new homebuyers and investors. Please call your state representatives today and urge them to vote no on these measures.”