Foreclosure Activity Hits A 7-Month High : NPR
vember 10, 2011
More U.S. homes entered the foreclosure process in October than in the previous month, with Florida, Pennsylvania and Indiana registering among the largest monthly increases, new data show.
Some 77,733 properties received an initial default notice last month, up 10 percent from September, foreclosure listing firm RealtyTrac Inc. said Thursday.
The number of homes scheduled to be auctioned or repossessed by lenders also posted monthly increases.
All told, notices of default, scheduled auctions and bank repossessions warnings that can eventually lead to a home being lost to foreclosure hit a seven-month high in October.
The numbers are further evidence foreclosure activity is picking up.
Meanwhile Thursday, Freddie Mac said the average rate on the 30-year fixed mortgage fell below 4 percent for just the second time in history. The rate on the 30-year fixed loan fell to 3.99 percent, down from 4 percent last week. The average rate on the 15-year fixed mortgage fell last week to 3.30 percent from 3.31 percent.
We all know that there is an underlying amount of properties that need to go into foreclosure and the sooner we clear that the sooner we can get housing to a normal level.
- RealtyTrac CEO James Saccacio
Foreclosure activity slowed a year ago after problems surfaced with the way many lenders were handling foreclosure documentation, namely shoddy mortgage paperwork comprising several shortcuts known collectively as robo-signing. Many of the nation’s largest banks reacted by temporarily ceasing all foreclosures, re-filing previously filed foreclosure cases and revisiting pending cases to prevent errors.
As of June 30, some 22.5 percent of all U.S. homes had a mortgage that was under water, according to CoreLogic. That’s 10.9 million properties. Another 2.4 million borrowers had less than 5 percent equity in their home, the firm said.