The real estate tracking firm Data Quick reports the number of Notices of Default in California jumped nearly 26-percent from the second quarter to the third. Those notices are the first step in the foreclosure process. DataQuick's Andrew LaPage says the increase might have come as lenders worked out settlements after the "robo-signing" scandal-- where mortgage papers were quickly signed without attention to detail.
"To hear some in the lending industry and the regulatory community tell it, certainly changes to their procedures over the last year combined with increasing staffs for processing delinquent loans has something to do with why we saw those numbers jump over the last couple of months…"
LaPage says notices had dropped to a three year low in the second quarter.