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OK Boomer, take a gander at this opinion by Barry Ritholtz the CEO and Director for Equity Research for Fusion IQ, an independent research firm.

Slowing Foreclosures?
Posted by Barry Ritholtz on Tuesday, August 12, 2008 | 11:30 AM
in Credit | Data Analysis | Legal | Real Estate

Get ready for some more Housing bottom calls!

Thanks to some interesting regulations passed by New York, California, and Massachusetts, additional notice is required before initiating foreclosure procedures.

Hence, the defaults and repossessions procedures we woulod have seen begin in August and September wont show up until October and November.

Here is a an excerpt from the WSJ:

"When the research firm RealtyTrac Inc. releases its latest foreclosure report Thursday, don't be surprised if the number of filings declines again.

Last month, RealtyTrac reported that foreclosure filings totaled 252,363 in June, down 3% from the previous month. Some analysts are expecting the July data to show another decline or very little change.

If that happens, could the improvement be a sign that the foreclosure problem is ebbing? Probably not. The data may reflect several developments aimed at reducing foreclosures, including new state and municipal laws that put a temporary moratorium on foreclosures. Such laws are designed to give homeowners more time to work with their lenders and modify troubled loans. Some cynics say the laws are designed to give the appearance that the housing crisis is easing ahead of the November elections."

What are the new legislative rules for foreclosure notices ?

∙ California requires lenders to wait an additional 30 days after a homeowner misses the first payment before filing a default notice;

∙ Massachusetts now gives homeowners a three-months grace period after they default on their mortgage before the lender can file to foreclose. (The law is credited with an 84% drop in foreclosure petitions);

∙ New York which passed a bill last week that requires lenders to send a preforeclosure notice to certain borrowers at least 90 days before foreclosure proceedings may be initiated;

Of course, these notice requirements only delay the inevitable for the vast majority of foreclosures.

Expect more false bottom calls in the housing market of the next 90 days.