03 Dec California Sees Cancellations of Foreclosures from Dual-Tracking Ban
One specific provision in California’s Homeowner Bill of Rights could be the reason California has seen a spike in cancellations of foreclosures. Although the Homeowner Bill of Rights doesn’t go into effect until 2013, the state has already seen a surge in foreclosure cancellations.
According to a recent report by ForeclosureRadar, this is the largest monthly increase since they began tracking foreclosures in September 2006. During the period between September and October, foreclosure cancellations in California spiked 62.1% and 36.7% during the year-long period. ForeclosureRadar suspects that some lenders are already starting the process of canceling foreclosures that fall into the dual-tracking category.
On October 3, a $25 billion mortgage settlement placed a ban on dual tracking. While the restrictions were intended for Bank of America, Citi, JP Morgan Chase, Wells Fargo, and Ally, the five largest servicers involved, the new rules in California apply to all lenders.
The good news is that foreclosure numbers are down around the western part of the U.S., and fewer California properties continue to enter the foreclosure process with foreclosure starts falling 8% month-over-month in October. Additionally, the states of Arizona and Washington also saw monthly declines in October, with foreclosures falling 15% and 4.1% respectively.
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