Analysts say one reason may be anticipation over the Obama Administration’s plan to expand a mortgage modification program. It would encourage so-called short sales. That’s when a property is sold for less than what’s owed on the loan. RealtyTrac’s Daren Blomquist:
“That’s one theory of why these defaults may be trending a little bit down is some lenders are anticipating that short sale program and maybe are not as quick to file the initial notice of default.”
Even though third-quarter foreclosure activity was down from the previous three-months, it was still nearly 19% higher than the same time last year. One in every 53 housing units in California got a foreclosure notice between July and September. California continues to have the nation’s third highest foreclosure rate behind Nevada and Arizona.