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Pre Foreclosures Dropped While Lis Pendens Law Got Tighter

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By : John Cutts    99 or more times read
In an effort to stem the tide of foreclosure, the government has made it more difficult for lenders to start foreclosure proceedings on a property. Tighter lis pendens law has aided this effort and some analysts speculate that this is part of the reason for the decline in the number of pre foreclosures in some areas of the U.S.

Michigan is one of the states that suffered greatly from the housing market crisis, with the number of foreclosed homes for sale in Flint, MI and in other local areas of the state continuing to hit record numbers in the past six months. Some local areas in the state also recorded rising numbers of pre foreclosures, particularly the Wayne County area.

Foreclosure homes in Michigan are expected to continue to record some of the highest levels all around the country, with pre foreclosures in some local areas continuing to rise during the second quarter of 2010, according to a recent report by Default Research. However, some cities hardest hit by the housing market crisis did post declining pre foreclosure numbers during the second quarter.

Some real estate market analysts have speculated that the decline is partly due to the stricter implementation of lis pendens law and the efforts exerted by the government to prevent lenders from simply starting foreclosure proceedings on a property without making any attempt at negotiation first.

For the second quarter of the current year, Default Research reported that pre foreclosure totals declined in some areas, including Phoenix, Las Vegas and Miami. In Michigan, the list of foreclosure homes for sale will likely remain the same as previous months, with pre foreclosures in some areas, including Wayne County, recording increases in the second quarter.

The county posted a 4.13% increase in pre foreclosure totals for the period April-June 2010. Total Trustee Sales for the area rose to over 6,000 compared with the 5,881 total recorded in the first quarter. Statistics also showed that at least 95% of these Trustee Sales were condominiums and single family dwellings.

Most analysts believe that the pre foreclosure declines recorded by some cities like Miami-Dade, Phoenix and Las Vegas are due to stricter rules governing the implementation of lis pendens law and improved efforts from the government in terms of holding back foreclosure proceedings.
John Cutts has been educated in the finer points of the foreclosure market over 5 years.

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