Lifting temporary moratoriums is believed to have caused a surge in foreclosures throughout the country. In Florida and New York there were moratoriums that expired as of March which is why many experts claim the foreclosures took such a leap. Banks such as Well Fargo and JP Morgan Chase lifted their moratoriums after President Barack Obama signed his new plan to help homeowners. Fannie Mae and Freddie Mac also lifted their moratoriums which make up more than 50 percent of the mortgages.

Lenders anticipated what the Obama Administration was going to do to help homeowners. After it was announced that there would be incentives to modify loans the moratoriums were lifted. The lenders receive cash incentives while homeowners continue to struggle to stay in their homes. There are still far and few in between that wait to get their loans modified to more feasible payments.

California default notices hit an all time high with more than 50,000 notices sent out in the first quarter this year. The state has had one of the highest numbers of foreclosures in the country. With these numbers it isn’t encouraging for the state for future months. However, it has been forewarned that things will get much worse before they get better.