Foreclosures ramping up again
Default notices are up 14% from the first quarter of this year, indicating the slowdown in foreclosures has come to an end.
Foreclosure activity increased by just less than 1% in the third quarter of 2011, according to RealtyTrac. However, the firm says a higher rate of default notices indicates lenders may finally be taking the brakes off of foreclosure proceedings.
"We're seeing the numbers go up after three straight months of quarterly decreases," says James Saccacio, chief executive officer of RealtyTrac. Post continues after video.
According to the data, one in every 213 U.S. housing units entered some stage of foreclosure -- default notice, auctions and bank repossessions -- during the third quarter. Foreclosure filings were reported on 214,855 U.S. properties in September, a 6% decrease from August 2011 and a 38% decrease from September 2010.
But Saccacio says there is "evidence that this temporary downward trend is about to change direction, with foreclosure activity slowly beginning to ramp back up." He points to default notices -- the first stage in the foreclosure process -- which were up 14% from the first quarter of 2011, as banks finally begin to push through the shadow inventory that accumulated as a result of low housing prices and the robo-signing controversy of 2010.
"U.S. foreclosure activity has been mired down since October of last year, when the robo-signing controversy sparked a flurry of investigations into lender foreclosure procedures and paperwork," Saccacio says. "It's time to press play again."
Saccacio believes foreclosure rates will return to higher levels in the coming months. However, even if banks resume a high number of foreclosure filings in the near future as predicted, the robo-signing controversy will not be without lasting effects on the market. RealtyTrac finds foreclosure processing and sales timelines are at record highs.
U.S. properties foreclosed on in the third quarter took an average of 336 days to complete the process, which was up from 318 days in the second quarter and is the highest number of days going back to the first quarter of 2007.
State by state, Nevada continues to post the nation's highest state foreclosure rate with one in every 44 housing units with a foreclosure filing in the third quarter.
California posted the second-highest foreclosure rate, where one in every 88 housing units had a foreclosure filing during the quarter, followed by Arizona, where one in every 93 housing units had a foreclosure filing.
Other states with high foreclosure rates include Georgia, Florida, Utah, Michigan, Idaho, Illinois and Colorado.
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The fish stinks from the head on down. And this has been true for several administrations and congresses. is the reason America is in deep doo-doo is that our government doen';t function. In only sucks in money and fails to lead. This country has jobs crying to be done but are blocked by government.
Old gas pipelines need replacing everywhere or more neighborhoods will blow up like in SF recently
We need to run all vehicles on Natural gas and stop importing oil. Building and maintaining that total industry will require hundreds of thousands of jobs
We need to put many thousands to work bringing all of America's energy to market.
We need progressive leadership. We now have reactionary leadership in the administration and congress.
Foreclosures ramping up again
Looks more like the bank's demolition crews tearing down America, instead of investing in America's growth and prosperity. Homeowners bailing out, while the taxpayers are bailing out the banks, and golden parachutes for the VIPs .. it is getting so that more people are bailing out than the Screaming Eagles floating down over Europe in WW II.
The information updating homes being foreclosed was a good article, well written.
The hope is that lenders will not manipulate buyers in the future, which is the positive outcomes of the bailouts.
All companies need to be carefully regulated.
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