Foreclosure activity in Fresno and California fell in May for the first time since January, a monthly foreclosure report said.
New federal guidelines on how to handle mortgages going into foreclosure slowed or stopped foreclosure sales in May while lenders digested the requirements, said Madeline Schnapp, economist for PropertyRadar, formerly ForeclosureRadar, the Truckee-based foreclosure listing service.
“The purpose of this guidance is to ensure that borrowers will not lose their homes without their files receiving pre-foreclosure sale reviews,” the letter said.
Last month, 287 notices of default, the first step in the foreclosure process, were filed in Fresno County compared to 305 the month before, according to PropertyRadar’s report released Wednesday.
Foreclosed properties that were returned to the bank after auction, also known as real-estate-owned or REO property, also fell in May to 48 compared to 95 in April.