Foreclosures Reach 7-Month High

November 11, 2011

Lenders are picking up the pace of foreclosures again, as the foreclosure rate posted its highest level in seven months, RealtyTrac reported Thursday.

A total of 230,678 foreclosure filings were issued in October, a 7 percent increase over September. However, last month’s filings--which include default notices, auctions, and bank repossessions--were still 31 percent below October 2010 levels.  

“The October foreclosure numbers continue to show strong signs that foreclosure activity is coming out of the rain delay we’ve been in for the past year as lenders corrected foreclosure paperwork and processing problems,” James Saccacio, chief executive officer of RealtyTrac, said in a statement. “However, recent state court rulings and new state laws keep changing the rules of the foreclosure game on the fly, creating more uncertainty in the housing market and threatening to prolong the road to a robust real estate recovery.”

In October, lenders repossessed 67,624 homes, up 4 percent from September. On a month-over-month basis, the increase in REO activity was even more pronounced in some states, such as Indiana (73 percent), New Jersey (48 percent), Oregon (45 percent), and Michigan (40 percent).

But the states with the highest overall foreclosure rates are Nevada (one in every 180 homes had a foreclosure filing in October), California (one in every 243 homes), and Arizona (one in every 259 homes). 

Source: “U.S. Foreclosure Activity Hits 7-Month High in October,” RealtyTrac (Nov. 9, 2011)

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