Number of foreclosures down in August, but default notices up
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14 September 2011
9:01 p.m.
VEGAS INC coverage
Notices of default on home mortgages in Nevada rose sharply in August, but the overall number of foreclosure filings fell, according to a California research firm.
The 4,086 default filings in August is 31 percent higher than July, RealtyTrac reported. But overall, Nevada foreclosure filings fell 2.5 percent from July and were nearly 28 percent lower than August 2010, the firm reported.
Nevada kept its No. 1 national ranking, with one filing for every 118 households.
Las Vegas led cities with one filing for every 103 housing units, more than five times the national average. Las Vegas’s default notices rose 30 percent over July.
What brought Nevada’s numbers down were fewer homes repossessed and sold at auction. There was a 30 percent decline in scheduled auctions from July and 6 percent decline in repossessions.
But the pipeline of foreclosures hasn’t slowed with the increase in default notices. Default notices had been down as lending institutions under fire slowed the foreclosure process.
Despite the increase from July, default notices in Nevada were still down 32 percent from August 2010.
Nationwide, foreclosure filings rose 7.2 percent between July and August. The reason was default notices reached a nine-month high and were 33 percent higher than July.
Default notices increased more than 40 percent month-over-month in several states, including California, but were still down from a year ago.
“The big increase in new foreclosure actions may be a signal that lenders are starting to push through some of the foreclosures delayed by robo-signing and other documentation problems,” said James Saccacio, RealtyTrac’s chief executive officer. “It also foreshadows more bank repossessions in the coming months as these new foreclosures make their way through the process.”
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"But the pipeline of foreclosures hasn't slowed with the increase in default notices. Default notices had been down as lending institutions under fire slowed the foreclosure process.....
Now we get to see how the courts are going to react to July's Leyva and Pasillas decisions, likely a slight pause then the suits will get back to feeding on those few brave homeowners who challenge them in court.
"The big increase in new foreclosure actions may be a signal that lenders are starting to push through some of the foreclosures delayed by robo-signing and other documentation problems," said James Saccacio, RealtyTrac's chief executive officer. "It also foreshadows more bank repossessions in the coming months as these new foreclosures make their way through the process."
In other words, back to business as usual after all 50 AGs and some federal regulators, like the OCC and OTS, made token efforts at enforcement. Meanwhile more families are forced out by a flood of paper, little of it with any real substance.
"If you're going to take my house away from me, you better own the note." -- Joe Lents (who hasn't made a payment on his $1.5 million mortgage since 2002) in Bloomberg's 2/22/08 "Banks Lose to Deadbeat Homeowners as Loans Sold in Bonds Vanish"
Without job growth home foreclosures are going to rise, it's that simple. There's no sign there's any immediate job growth coming but there's multiple signals that more layoffs are around the corner.
It appears that more pain and less gain is coming to a neighborhood near you.