This report over at CNBC (via Patrick.net) states that foreclosures did not surge in April because "banks simply didn’t have the capacity to process all the distressed loans" due to the moratorium.
They quote Mark Hanson of the Field Check Group regarding Washinton Mutual 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.
This fits right in to the data we've presented on Sonoma County:
Gosh,maybe making those 100% loans at 12x stated income wasn't such a great idea after all.Who would have guessed that Real Estate was cyclical?
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