Lenders Cancelled many Foreclosure Proceedings in November
Bowing to intense public and governmental pressure many mortgage lenders cancelled a good number of foreclosure proceedings in November. For November 10,469 were scheduled to be foreclosed upon but these were cancelled through entire California. It is an increase by 20% from the October figures of 8,741 foreclosures according to the findings of ForeclosureRadar.
In Santa Clara County there were 337 cancellations as against 269 in October. On each business day there were 416 cancellations noted in October and in November 581 cancellations on each working day. It was a 40% increase on a daily basis average because there was less number of working days in November as compared to October.
The spike in foreclosure cancellation has been attributed to the recent endeavours of the lenders who have been strongly pressurized by the Obama government to shift more borrowers who have completed their trial run into the permanent modification status. Sean O’Toole of ForeclosureRadar said, “It’s certainly a dramatic increase and it’s one we’ve been waiting for, for months.”
All through most part of 2009 there have been nearly 6,000 to 9,000 cancellations per month. It peaked in July with the numbers touching 10,818 across California. After that it fell and then since November has started to increase.
According to HAMP plan of the Obama government those who successfully run through the trial modification period, that was scheduled to be 3 months but is often stretched further. Those who have paid 3 successive months of the modified amount without faltering are said to be eligible for permanent status with their foreclosure being cancelled. The programme was expected to bring down the monthly payments by about $550 on an average as per the estimates of the Treasury.
Sharleen Kilgore of Project Sentinel in Sunnyvale assists the borrowers to get their loans modified. The agency is affiliated with HUD. Her group is “seeing more people being moved into permanent modifications, but it’s still a very slow process. A fair amount of our people on trial modifications go for as long as four or five, and in a couple cases six, months.”
Towards the end of November the government made the announcement of a target. 375,000 of those who were eligible after successfully completing the trial period would be awarded the permanent status before the year drew to a close. It appears that a good number of lenders are responding to this strong call.