California State Senate Bill 1137 takes effect, dramatically impacting foreclosure filings.
Discovery Bay, CA, October 13, 2008- Foreclosure Radar (www.foreclosureradar.com), the only website that tracks every California foreclosure with daily auction updates; today issued its California Foreclosure Report for September 2008. Notice of Default filings, which indicate the start of the foreclosure process, fell 61.8 percent in September due primarily to new legislation that went into effect on September 8th. California State Senate Bill 1137 imposes significant new requirements on lenders prior to filing for foreclosure, and the drop indicates that the lenders were not ready the impact. The bill also affected new Notice of Trustee Sale filings, which dropped 47.3 percent from August. The bill did not directly impact foreclosure sales; however, the still fell by 12.4 percent.
The intent of the bill is to reduce foreclosure rates with one of the requirements being that lenders make contact with homeowners prior to filing a foreclosure, to ensure that they are aware of all their options. The bill requires lenders to make a series of attempts to contact homeowners, and then wait 30 days after either contacting the owner or fulfilling the required steps before filing the foreclosure notice.
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