The July 2009 ForeclosureRadar foreclosure report for California was released today. It continued to show high levels of Notice of Defaults (NoD), Notice of Trustee Sales (NTS) and Trustee Sales.
The main takeaway from the report is one any follower of foreclosures would see since last July:
“Despite the failure of the California Foreclosure Prevention Act to slow Notice of Trustee Sale filings it is clear that lenders and servicers are delaying foreclosure” says Sean O’Toole, founder and CEO of ForeclosureRadar. “More homeowners are now sitting at the brink of foreclosure, just days away from the next scheduled auction date, then ever before, yet we simply aren’t seeing the wave of foreclosures many predicted.”
Anyone saying the banks aren't doing enough isn't looking at the issue they face. Underwater borrowers with little income in a high cost area of the country. Few modifications pencil in this type of enviroment. We have low rates, a ready pool of buyers (many areas are still over 50% renters) and prices above their historical norms.. it makes very little sense for servicers to hold off foreclosing in areas like So. Cal. Yet here we are.. few foreclosures and rising defaults. The banks have been harangued by the politicians from doing something other than what makes economic sense and instead will carry this albatross around their necks for many years to come.