Saturday, October 25, 2008

California foreclosures spike 228%

A new law mandating delays in foreclosure actions may create a fleeting lull, but observers wonder whether it will lead to widespread mortgage workouts.

Reporting from Sacramento and Washington -- The number of people losing their homes in California hit a record high of nearly 80,000 in the last three months, but a new state law appears to be dramatically slowing the foreclosure process -- at least for now.

Loan default notices, the first step toward foreclosure, fell to 94,240 for the three months that ended Sept. 30. That's down sharply from the record 121,673 for the previous quarter, according to research firm MDA DataQuick.

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