May Foreclosure Rate Steadies as Banks Hold Back

May Foreclosure Rate Steadies as Banks Hold Back
Associated Press, June 10, 2010

The number of people facing foreclosure is nearly flat from a year ago, according to the latest report from a private foreclosure listing service. A third fewer people are receiving legal warnings that they could lose their homes. And foreclosures are receding in some of the hardest-hit cities. Still, the number of foreclosures remains extraordinarily high. Experts caution that a big reason for the stabilization is that banks are letting delinquent borrowers stay longer in their homes rather than adding to the glut of foreclosed properties on the market. New consumer protection laws, which vary by state, have also meant borrowers can spend more time in their homes.

Foreclosure Filings Decline 3% in May
Los Angeles Times, June 10, 2010

Foreclosure activity in the U.S. continued to level off in May with the number of homes caught up in some stage of the process falling 3% from April, a real estate firm said. A total of 322,920 properties received some kind of foreclosure filing last month — either default notices, scheduled auctions or bank repossessions — a 3% drop from April and an increase of less than 1% from May 2009, according to RealtyTrac in Irvine.

Pile of Foreclosure Mediation Bills Wait in California Congress
HousingWire, June 9, 2010

A number of foreclosure mediation bills introduced in California in recent months await consideration and votes by the State legislature. Californian lawmakers previously adopted sweeping reform of the State's foreclosure process in Senate Bill (SB) 1137, including certain communications required between the mortgage servicer and borrower to determine the financial situation and explore foreclosure alternatives before a notice of default may be filed. Many of the bills awaiting attention amend that existing legislation.

Union to Banks: Fix Up L.A.’s Foreclosures or Else!
Wall Street Journal, May 28, 2010

Los Angeles needs cash, the city’s unions are trying to prevent layoffs and Southern Californian’s residents are still hurting from the foreclosure crisis. What to do? Get the banks to pay up! L.A.’s City Council recently passed a “foreclosure registry” ordinance, requiring lenders to maintain foreclosed properties or be fined $1,000 per day, up to $100,000 a year. Lenders will have 30 days to fix problems before fines set in.