October 24, 2008
More on Local Foreclosures and Loan Modification Programs
The LA Times today says that foreclosures in California declined sharply in the third quarter, 2008, due to the new California law mandating delay and communication between the bank and the homeowner before foreclosure. There were 94,000 default notices in the third quarter compared to 122,000 in the 2nd. Default notices dropped to 15,000 in September after averaging 40,000 a month for the five months before that.
There is speculation that this is just a lull since the new law added a few hurdles to foreclosing and that takes time. One hurdle is that the lender may not file the NOD until 30 days after "contacting the borrower"
On a similar front, Countrywide has announced it will introduce a "mortgage-modification program" which will reduce the borrower's monthly payment to 34% of his confirmable monthly income. The ultimate goal is to modify 395,000 loans - 125,000 in California. Countrywide will begin contacting borrowers on December 1.
Indy-Mac mailed 15,000 loan modification proposals to borrowers and some 3,500 have accepted the proposal and "thousands more are being processed."
"I've got to admit it's getting better
A little better all the time (can't get no worse)"
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