Foreclosures Edge Down Again

Submitted by Rich Toscano on October 25, 2009 - 8:32pm

Here, a little later than usual, is the monthly foreclosure activity update.

The following chart shows that default notices and trustee sales, respectively the initial and final stages of foreclosure, both declined last month.

But both defaults and trustee sales remain at levels that are, shall we say, elevated.

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Submitted by Arraya on October 26, 2009 - 8:32am.

I wonder why that is...

My own personal experience with Citi: We stopped paying our mortgage in April. So that is...six months with no payment. They call every 3-4 days (but lately have gone as much as 2 weeks without calling). I am not in foreclosure yet. They tell me they don't know when they'll start the foreclosure process, but that I'm "in danger" of foreclosure. Well, no crap. I'm amazed, as I was sure they'd start foreclosing way sooner than this.

Oh, and lately the calls from Citi have been recordings telling me to please hold for the next available person, but then it disconnects and I never talk to a person. This has happened probably the last 5-6 times I answered the phone.

I called Chase back in January, when I was 90 days past due. Another representative told me that I would automatically be evaluated for a loan modification.

“You should just wait until you hear from one of our negotiators,” he told me politely.

Another two months passed without anyone calling, so I tried again in late March.

“I’m sorry, but our analysts have been backed up,” yet another Chase rep told me, even more politely than the previous one. She said each analyst had about 500 distressed borrowers to deal with, and it had been taking about five weeks for customers to get a direct response. The delays seemed to be getting longer.

I was actually beginning to feel sorry for Chase. It seemed to be so flooded with defaulting borrowers that it didn’t have time to foreclose on my house. Eight months after my last payment to the bank, I am still waiting for the ax to fall.

Submitted by peterb on October 26, 2009 - 8:42am.

Good way to reduce the number of NOD's. Just stop issuing them.
The system is not what it used to be, and this is making the data we're now looking at less than a reliable measure against past events. And it still looks horrible.

Submitted by jpinpb on October 26, 2009 - 5:33pm.

Yep. That's exactly what's happening. I personally know someone who did not make a payment for several months and NEVER even got one NOD. They ended up doing a short sale that was 45% off 2005 price.

There are far more many NODs that should be filed that are, let's say, suspended. Just more distressed invisible properties that mount. You have to dig to find out the truth. It's nothing but games. Hot potato, kick the can and now hide the pea under the shell. Or sweep it under the rug.

The NODs are still there, just not recorded. The foreclosures should be happening, but banks aren't doing it and the banks are "healthy" because of accounting rules.

I feel like I'm at a magic show. All lame tricks. Doesn't really change what's happening. Just trying to give you the illusion that everything is okay.

I don't question the distress that's out there. I just want to see how it's all going to be absorbed or resolved or disposed.

Submitted by SD Realtor on October 26, 2009 - 10:50pm.

JP I agree with you. I believe less NODS are being filed but more people are in distress.

Submitted by jpinpb on October 27, 2009 - 1:26pm.

Well, I don't know about necessarily distressed, but working the system for sure. The people who did the short sale had money to make payments. They bought the condo w/the intention to flip in a few years and move up. They wanted a bigger place, but that was all they could afford in 2005. When the market went south and their plans weren't going to materialize, they stopped paying.

This is only one I personally know so I can verify true, but I hear plenty of similar story of friends of friends who are not paying, some up to a year now, still no NODs.

This is where, unfortunately, we can't really rely on data b/c it is being hidden, whether intentional or otherwise. Considering everything that has happened in the past 10 years, I've become somewhat skeptical, so I am more inclined to believe it is intentional.

I am not gullible enough to believe that everything is improving as the powers that be would like us to think.

Submitted by maybe on November 10, 2009 - 2:40am.

What are the requirements for adverse possession in California?

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