Foreclosure starts driven higher by Bank of America
Foreclosure filings and foreclosure sales increased in August throughout the majority of areas covered by ForeclosureRadar.
Foreclosure starts – the first notice filed, either a Notice of Default or Notice of Trustee Sale depending on the state – rose in every state, and appears to have been primarily driven by Bank of America and related entities, where foreclosure starts rose 116 percent from July to August, according to the report. Wells Fargo and US Bank also saw increases in foreclosure start filings, while filings by JP Morgan Chase and Citibank were essentially flat.
Notice of Default filings increased 69.5 percent in California, to the highest level in a year. Notice of Trustee Sale filings were up more moderately, rising 6 percent month-over-month, but down 23.6 percent year-over-year. Cancellations were nearly flat, up just 1.9 percent from July.
Activity on the courthouse steps increased in August, with Properties Sold Back to Bank (REO) increasing 12.3 percent from the prior month. Properties Sold to Third Parties rose 9.9 percent month-over-month and 10.8 percent year-over-year. Time to Foreclose increased to 333 days in August, 49 days longer than a year ago.
AR recently issued a Call For Action urging REALTORS® to contact Congress and clearly communicate that Congress needs to prevent conforming loan limits from expiring on Sept. 30.
Unless Congress acts, the current loan limits will expire on Sept. 30, and the cost of a mortgage could rise significantly. More than 30,000 California families will face higher down payments, higher mortgage rates, and stricter loan qualification requirements if conforming loan limits on mortgages backed by the Federal Housing Administration (FHA), Fannie Mae, and Freddie Mac are reduced beginning October 1, 2011, according to analysis by C.A.R.
Despite the Obama administration claiming it will support a one-year extension of the current loan limits, Bank of America already has lowered its loan limits for new loans, and others will follow suit.
Please contact Congress today and communicate clearly that a housing recovery depends on keeping mortgages affordable and that Congress needs to prevent these higher loan limits from taking effect.
