Foreclosure Filings Fall in the Golden State

Foreclosure filings in California fell in April for the first time since the beginning of this year, according to a report from ForeclosureRadar.com. Notices of default were down 16% from March and 41% from April a year ago. Notices of trustee sales dropped 10% from the previous month and 3% from March, 2009, according to a report in The Orange County Register. But though filings declined, the number of properties in preforeclosure or scheduled for auctions dropped just slightly as the dip in filings was offset by an increase in the time to foreclose, said Sean O'Toole, CEO of ForeclosureRadar. Cancellations of foreclosure auctions, or trustee sales, also continue to climb, up more than 32% from the beginning of 2010. "The steady rise in cancellations leads us to believe that loan modifications and short sales are gaining traction," he said. "I'd caution, however, that cancellations also occur due to filing errors and extended postponements, which require the Notice of Trustee Sale to be re-filed. In fact, 14.6% of new Notice of Trustee filings in April were on previously cancelled foreclosures." In general, California, historically, accounts for 15% to 20% of the origination market.