After a dramatic increase in foreclosures in the state of California for August, and a subsequent fall in September; there was little change in foreclosure activity for the month of October.  Foreclosure investors were able to gain traction with 9.9 percent more properties sold to third parties in October.  This number represented a record 28.8 percent of all foreclosure sales throughout the state.  Just one year ago, only 16.9 percent of all foreclosures were purchased by third parties. 

Other states showed mixed data on foreclosure rates.  For example, Nevada saw foreclosure starts drop as a result of the passing of AB 284.  This brought stricter requirements on filing Notices of Default, and seems to have specifically targeted Recon Trust, (a trustee that handles all Bank of America and Countrywide foreclosures) by prohibiting a trustee from being owned by the foreclosing lender.  In Washington, foreclosure started continued their decline since being impacted by a lawsuit.  This lawsuit, filed by the State Attorney General, alleged Recon Trust was illegally foreclosing on properties in the state.  Since the lawsuit filing in April, foreclosing numbers have dramatically dropped.  Arizona is also now seeing its lowest levels of foreclosure starts since the spring of 2009, with just 6,133 Notice of Sale filings in October.  In Oregon, foreclosure starts have also continued their drop after an increase in April; they are now down 20.6% in October.  

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