Where the market has not hit bottom

The Foreclosures Facts

 RealtyTrac found. while the number of overall foreclosures fell by 35% in June from a year ago – to the lowest level since December 2006 – the number of so-called judicial foreclosures surged 34%.

In California, we have a trust deed state. That means that foreclosure is a set process that just goes through the steps with no judge involved. It takes a lot less time here. If you need a judge, it’s a lengthy process especially with the fact that most states are broke and have laid off employees.

There are 23 “judicial states,” where the courts oversee the foreclosure process. “If it is a judicial foreclosure, then it goes through the court system and the bank has to sue the homeowners,” Foreclosure signexplains Carey Frankel, a Realtor based in Ponte Vedra Beach, Fla. “This is a lengthy process that delays the time from default to actual possession of the property by the bank,” Frankel says. In a non-judicial state, the lender might only notify the owners that they are in default before putting the home up for auction. (Each non-judicial foreclosure state has its own requirements.)

Foreclosures in New Jersey rose 103%, Florida surged 100%, Maryland 94%, New York 66% and Illinois 65%. What’s more, many of these properties are likely to come to market in the next six to 12 months, says Daren Blomquist, vice president at RealtyTrac. “If you missed the bottom of the housing market, this might be the last chance to get a bargain on one of these foreclosure “, he said.

Banks are ignoring new regs

Tim Geihtner and Ben Bernanke

Why am i not surprised? We regulate and banks ignore. Same old story. New laws in Ca. say that dual tracking is illegal. That is when banks continue the foreclosure process while you are negotiating a loan modification.  They are not supposed to do it. Still doing it.

You are also supposed to have a single point of contact through the whole process instead of being jerked around from person to person. Guess what- not abiding by that law also.

What do we have to do to get the banks to obey the law. Anyone got any ideas?

Foreclosure slowdown

Foreclosure Sign
The California Homeowner Bill of Rights (HBR) which just passed is the reason behind the recent slowdown in foreclosure sales and short sales in Ca. The reason for this is because of the litigation risk from this bill.

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Banks are not paying attention to the law.

Gavel on Money
Last year the 5 biggest banks cut a deal with 49 attorney generals.They were B of A, Chase, Wells Fargo, Citigroup and Ally financial.  In return for not being sued, they agreed to certain practices.

Read more on Banks are not paying attention to the law….