Orange County Foreclosures Slowing Sequentially

Residential servicers initiated foreclosure proceedings on 1,868 home loans in November in Orange County, Calif., a 55% jump from a year ago but down 13% from October, according to a report in The Orange County Register. The county and surrounding areas are among the hardest hit in the state in terms of home price declines. The big rise in notices of default from a year ago is largely due to a state law enacted in September 2008 that delayed or halted foreclosure filings, at least temporarily. The law requires banks to attempt to talk to borrowers at least 30 days before filing a default notice and discuss options to avoid foreclosure. The law impacts loans made at the tail end of the housing boom, the newspaper reported. Default notices in Orange County have been trending down since July. One reason for the decline is political pressure placed on servicers to help more consumers avoid foreclosure. The largest servicers in California include Bank of America and Wells Fargo.