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.

By MSN Money Partner Oct 13, 2011 10:18AM

This post comes from Jeanine Skowronskiat partner site MainStreet.

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.

More on MainStreet and MSN Money:

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economyforeclosurehome financinghomesmortgage

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8Comments

Best

Oct 14, 2011 7:04AM

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.

Previous replies

goldbug09

Oct 13, 2011 10:56PM

This doesn't even include the foreclosed REO's the banks are not putting onto the market.It's over,ladies and gentlemen.And when you consider that 50% of American workers now make less than $30,000/yr,it doesn't take an economist to see that the housing market in the United States is finished.All-time low interest rates don't mean a whole lot to a working class that doesn't earn enough money to save for a down payment or actually afford a mortgage.

Previous replies

stinray

Oct 13, 2011 4:02PM

Thanks Freddie and Fannie!!! You will always be remembered by the left as being sound and respected!!! The left was offended when it was brought to their collective attention that Freddie and Fannie were doing some very under handed mortgages!!! The banks were FORCED to give out these loans because the gov't said to do it or else!!!! Blame the banks all you want because it is easy and it is what you are being told but the smart people in this country no the real issues!! The sheepole of this country need to wake up and think for yourselves!!!!!!

Previous replies

buzzybucks

Oct 13, 2011 10:09PM

The inflation that Ben Bernanke says doesn't exist along with the Improving jobs and wage picture that the BLS sees is obviously doing wonders for the real estate market

Previous replies

upperdoper

Oct 13, 2011 9:53PM

There are so much disintegration in usa it's turning catastrophic. The only positive about what's happening is the population explosion created by influx of immigrants legal or illegal may start to taper down.Just may be

Previous replies

Re-TOG Re-TOG (Re-TOG)

Oct 13, 2011 8:49PM

I'm tired of all of this.....if they don't TRY, ,let them live in a box or DIE.

Previous replies

Doug (Out in the cold)

Oct 13, 2011 3:14PM

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.

Previous replies

Final Word

Oct 14, 2011 6:57AM

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.

Previous replies

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