California Foreclosure Filings Have Been On A Steady Downtrend Since March 2009

California foreclosure filings have been on a steady downtrend since March 2009 as government agencies have rolled out more programs that have successfully lengthened the foreclosure process or provided alternatives such as short sales, principal balance reduction loan modifications, second-lien extinguishments and other forms of debt relief. 

 

California foreclosure filings — Notices of Default plus Notices of Trustee Sale — increased 4.0 percent this March, but were down 59.3 percent for the past 12 months. 

March Notices of Default (NOD), which is the first stage of the foreclosure process, rose 9.5 percent from February. More importantly, NODs are up 65 percent since January, suggesting that some of the regulation-driven decline in foreclosures toward the end of last year has reversed course. While the gain since the beginning of the year was large in percentage terms, the longer-term downtrend has held firm. The March 2013 NODs were at their third-lowest level since we began tracking the data in September 2006. Over the past 12 months, NODs were down 65.3 percent.  

 

It will be interesting to see where we are with these stats at the end of the year.  Inventory is tight causing home sales to rise. Some lenders are more willing these days to work with borrowers who are struggling with their mortgage.   We will keep watching and reporting to you as the year rolls out!

Nancy Puder is the broker and owner of Signature Properties, a real estate sales and management firm in Arroyo Grande, CA.  You may contact her at Nancy@NancyPuder.com or (805)710-2415. She always enjoys hearing from you!