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Loan mods, short sales appear to gain traction in California

ForeclosureRadar: Cancellations up 174% year-over-year

Foreclosure cancellations in California skyrocketed 174 percent year-over-year in April, according to a report by foreclosure data company ForeclosureRadar. At the same time, foreclosure filings in the Golden State fell month-to-month for the first time since January. Notices of default fell 41.2 percent year-over-year and 16 percent month-to-month, while notices of trustee sale were down 3.1 percent year-over-year and 10.3 percent month-to-month. Cancellations jumped 11.4 percent month-to-month and 174.4 percent since April 2009. "The steady rise in cancellations leads us to believe that loan modifications and short sales are gaining traction," said Sean O'Toole, founder and CEO of ForeclosureRadar.com, in a statement. "I'd caution, however, that cancellations also occur due to filing errors and extended postponements, which require the notice of trustee sale to be re-filed. In fact, 14.6 percent of new notice of trustee filings in April were...

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