Huge Increase in Cancellations of California Foreclosures

Foreclosure cancellations in California were up 62.1 percent from September to October, and 36.7 percent compared to the same period last year according to ForeclosureRadar. However, the trend is more likely the result of government intervention as opposed to economic recovery.

The California Homeowner Bill of Rights goes into effect on January 1, 2013, is most likely what is driving the increase in foreclosure cancellations. The Bill of Rights will prevent the “dual-tracking” of foreclosures, which are those with loans being considered for either a loan modification or short sale while at the same time proceeding through the foreclosure process.

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