Bank Repossessions and Scheduled Auctions Set Quarterly Records While New Defaults Continue to Decline
2:30pm | Foreclosures continued to rise in the third quarter of the year, but were slightly lower than a year ago, and repossessions hit a record in September, a report released today shows.
RealtyTrac reported that foreclosure filings, which includes default notices, scheduled auctions and bank repossessions, were reported on 930,437 properties in the third quarter, nearly 4% increase from the previous quarter. However, the report shows foreclosures fell a 1% from the third quarter of 2009.
When broken down, the numbers are still high: One in 139 U.S. housing units received a foreclosure filing during the quarter, according to the report.
Related: City Council approves creation of Foreclosure Ordinance (09.08.10)
Foreclosure filings rose nearly 3% in September from August, and saw an increase of 1% from September 2009. A total of 102,134 bank repossessions were reported in September, the first time repos have surpassed the 100,000-mark in a single month.
“Lenders foreclosed on a record number of properties in September and in the third quarter, taking a bite out of the backlog of distressed properties where the foreclosure process was delayed by foreclosure prevention efforts over the past 20 months,” said James J. Saccacio, chief executive officer of RealtyTrac, in a statement.
“We expect to see a dip in those bank repossessions—and possibly earlier stages of the foreclosure process—in the fourth quarter as several major lenders have halted foreclosure sales in some states while they review irregularities in foreclosure-processing documentation that has been called into question in recent weeks.”
Related: Councilmember Neal Defaulted On Loan, Could Lose Home (09.20.10)
Nevada retained its dubious top ranking, continuing to have the nation’s highest state foreclosure rate in the third quarter of 2010, despite a year-over-year decline in foreclosure activity. One in every 29 Nevada housing units received a foreclosure filing during the quarter, the RealtyTrac report states.
Arizona posted the nation’s second highest state foreclosure rate for the fifth consecutive quarter, with one in every 55 housing units receiving a foreclosure filing, and Florida posted the nation’s third highest state rate with one in every 56 housing units receiving a foreclosure filing.
California ranked fourth, with one in every 70 housing units receiving a foreclosure filing during the third quarter.
Other top 10 sates were: Utah, Georgia, Michigan, Illinois and Hawaii.
Related: Long Beach Gets $1.5 Million To Fight Foreclosures (09.09.10)
In related news, Fannie Mae said Wednesday it is stepping up efforts to help lenders identify defective loans amid signs quality is falling short by stopping more loans with defects from being sold into its guaranteed bond program under an initiative to help lenders reduce their liability, according to a recent Reuters article.