O.C. foreclosure starts plummet amid new law
- Thread starter Anonymous_IHB
- Start date
NEW -> Contingent Buyer Assistance Program
Trooper_IHB
New member
Yeah, but it's just a temporary stall due to new regulations. They'll pick up in a month or two once everyone is on board with the new requirements.
<em>Senate bill SB 1137, which Gov. Schwarzenegger signed on July 8 but the foreclosure provision was enacted 60 days later, states lenders and loan servicers must contact a homeowner at least 30 days before filing an NOD and explain their options to avoid foreclosure.
The bill only covers loans made during the final years of the housing boom.
O?Toole said the communication provision will slow NOD filings as banks adapt to the law. But he doesn?t expect a decrease in the total number of NODs or actual foreclosures over the long term.
?This is largely a paperwork issue,? O?Toole said.
He says if borrowers are upside down on their mortgages, <strong>they will still walk away</strong>. Nothing in the bill changes the fundamentals of the housing market, he said.
O?Toole said there could be a modest decline in actual foreclosures in coming months, but that would only delay the housing recovery, he said.</em>
<em>Senate bill SB 1137, which Gov. Schwarzenegger signed on July 8 but the foreclosure provision was enacted 60 days later, states lenders and loan servicers must contact a homeowner at least 30 days before filing an NOD and explain their options to avoid foreclosure.
The bill only covers loans made during the final years of the housing boom.
O?Toole said the communication provision will slow NOD filings as banks adapt to the law. But he doesn?t expect a decrease in the total number of NODs or actual foreclosures over the long term.
?This is largely a paperwork issue,? O?Toole said.
He says if borrowers are upside down on their mortgages, <strong>they will still walk away</strong>. Nothing in the bill changes the fundamentals of the housing market, he said.
O?Toole said there could be a modest decline in actual foreclosures in coming months, but that would only delay the housing recovery, he said.</em>
billbaldi_IHB
New member
The foreclosures dropping is merely a paperwork issue. The new law if people are not familiar with requires that banks contact homeowners 30 days before the bank files a NOD and they have to go over options with the homeowner to see if they can avoid foreclosure. This is a bad bill and puts the burden on the banks for poor decisions made by people who bought homes they couldn't afford. The banks are not staffed to do this and this is just postponing the NOD. Eventually these banks will set up a depatment that handles the process of contacting homeowners before the NOD is filed and the floodgate of foreclosures will return at a greater pace.
graphrix_IHB
New member
This why it is important to read the foreclosure thread.