Data from ForeclosureListService.com shows that Notice of Default (NOD) filings jumped substantially last month. Why now? Here’re the numbers and why I think we’ve seen an increase.

First, look at the numbers going back 2 years:

Note how the numbers fell off last fall. This was when Schwarzenegger attempted to put a moritorium on foreclosures in California – didn’t last too long did it?

My opinion is that lenders are rushing to get their foreclosures “to market” because Congress is debating at the moment what the lenders fear – mortgage “cramdowns”.

Bankruptcy judges currently don’t have authority to modify mortgages of personal homes. That’s about to change. I believe that once BK judges get that authority, many home owners will file a chapter 13 for the express purpose of getting mortgage relief (and stop foreclosures – which is the stated intent of Congress and the Obama administration).

It’ll be interesting to see what the March numbers look like.