It is being reported that Foreclosure starts jumped by double digits from July to August in four out of five Western states tracked by ForeclosureRadar. This reversing what had been a declining trend over the past several months.
The reported increase in foreclosure starts seen in Arizona, California, Nevada, Oregon and Washington appeared to be driven primarily by Bank of America and related companies. This boosted their notice of defaults and notice of trustee sale filings by 116 percent from July to August.
Wells Fargo and US Bank also increased their foreclosure start filings while filings by JP Morgan Chase and Citibank were essentially flat.
In California, foreclosure starts jumped nearly 70 percent from July to August, totaling 31,965, which is the highest level in a year. The average time to foreclose in California increased to 333 days in August, 49 days longer than a year ago while the notice of trustee sale filings were up more moderately, rising 6 percent from July to August but still down nearly 24 percent from a year ago at 24,020
Notice of trustee sale filings were up more moderately, rising 6 percent from July to August but still down nearly 24 percent from a year ago at 24,020.
California properties sold back to the bank (REO) also increased to 12 percent from July, to 11,104, down nearly 23 percent from a year ago. Sales to third parties on the courthouse steps were up 10 percent from July, to 3,853, an 11 percent increase from a year ago.
California foreclosure inventories remain down or flat from a year ago. Banks had 107,000 REO homes on their books — about the same as in July — and the number of homes scheduled for trustee sale was down nearly 24 percent from a year ago, to 94,000.
Homes in preforeclosure — those already hit with a notice of default but not yet scheduled for sale — jumped 20.5 percent from July to August, to 134,000. That was 10 percent below the preforeclosure number in California a year ago.
