Pre-Foreclosures are increasing, any trends in your area?

[John Slater]

Curious to know what you see in your state.

We are seeing pre-foreclosures continue to increase in So.Cal, and continue to see the same trends over and over again....

A lot of these pre-foreclosures have two things in common:

1. The first lender, often a big mainstream lender sold the note to a smaller lender in the last 12 months, to a kind of trust management company.

2. The default amount is super high, 60-70k, meaning these people were in default during covid pandemic

So at least here in Cali its common to see both these traits in new Pre-foreclosures meaning big lenders sold "bad debts" to smaller lenders.  

Are you seeing any trends in your market?

and why aren't big lenders foreclosing, instead selling their notes to smaller lenders who then foreclosure?