We keep hearing that it's coming, and July numbers from ForeclosureRadar would point in that direction. Maybe. Notice of Trustee Sale filings in the state are up 31.6 percent from a year earlier, while the number of properties scheduled for foreclosure sale rose to a record level. The increase could indicate that lenders have been postponing sales because of government-mandated moratoriums or increased efforts at loan modifications.
"It is clear that lenders and servicers are delaying foreclosure" says Sean O'Toole, founder and CEO of ForeclosureRadar. "More homeowners are now sitting at the brink of foreclosure, just days away from the next scheduled auction date, then ever before, yet we simply aren't seeing the wave of foreclosures many predicted." Political pressure, financial incentives and the postponement of sales awaiting the completion of loan modification trial periods are likely reasons for the delays. The vast majority of foreclosures, 72 percent, are postponing either due to lenders request, or mutual agreement between the lender and borrower. Only 10 percent are being postponed due to bankruptcy. With few exceptions the remainder have not yet been postponed and are scheduled for their first sale date.
From Calculated Risk:
Whether or not there is a flood of foreclosures soon appears to depend on the loan mods. Notice that foreclosures remain pending during the loan mod trial period - so it is possible that the lenders will start cancelling many of these 'Notices of Trustee Sale' soon if the mods are successful.