Foreclosures down in Arizona, California, Nevada in 2010

Foreclosure starts and sales declined in Arizona, California, and Nevada in 2010 due in large part to a reduction in foreclosure sales amid last fall’s robo-signing scandal.
 
The decline in foreclosure starts in the three western states was the first annual decline since the foreclosure crisis began, according to ForeclosureRadar.  Foreclosure cancellations rose in the first half of 2010 as homeowners saw more short sales and loan modifications approved.  Investors quickly flipped foreclosure purchases for profits as buyers hurried to take advantage of tax credits.  But as the tax credits expired, the market began to slow.

Foreclosure cancellations also began to drop as the government push for loan modifications faded and short sales slowed with the rest of the housing market.  In the third quarter, foreclosure sales dramatically declined after the robo-signing scandal broke, leading Bank of America to completely halt foreclosure sales for nearly two months.

Reprinted From C.A.R.