From Diana Olick's Realty Check blog on CNBC, posted May 11, 2009
I’m hearing some elevated chatter in the blogosphere regarding elevated rates of foreclosure, and not just the usual monthly bump up. RealtyTrac, one of the leading online trackers of this sort of thing, is releasing its April data on Wednesday, but word from others is that May could be the month that shows just how bad the numbers will get.
Mark Hanson of the Field Check Group, who works with ForeclosureRadar.com, writes, “there is a Pigzilla the size of a freight train in the python and it has worked its way to the lower intestines.” Hanson claims that foreclosures did not surge in April because the banks simply didn’t have the capacity to process all the distressed loans after all the moratoria had caused a backlog. Specifically, he points to Chase and its WaMu loans.
Beginning on May 4th the properties taken to foreclosure in CA surged. For the past few months, WaMu had been on near full foreclosure moratorium. As of May 7th -- only 5 calendar days into the month -- WaMu already has 10% MORE foreclosure-related REO’s than in all of April. At this run rate, WaMu will have a record foreclosure month of 3300 foreclosures in CA alone or 7000 nationally worth approximately $2.5 billion.
Even scarier... (continue reading original post here)
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