October foreclosures up 10 percent from September
Foreclosure activity picking up steam after 'robo-signing' debacle
Foreclosures of U.S. homes increased in the month of October from the
previous month of September by as much as 10 percent. The states of
Florida, Pennsylvania and Indiana reported the highest increases. The
number of homes scheduled to be auctioned or repossessed by lenders also
posted monthly increases.
Foreclosures had slowed a year ago after it was learned that many lenders were handling foreclosure documentation, inaccurate mortgage paperwork using several shortcuts, commonly known as 'robo-signing.'
Foreclosures had slowed a year ago after it was learned that many lenders were handling foreclosure documentation, inaccurate mortgage paperwork using several shortcuts, commonly known as "robo-signing."
A year ago, several major banks acknowledged problems with paperwork they were using to file foreclosure actions against delinquent homeowners. They announced various changes in practices and temporary moratoriums in new filings while they worked through the problems.
The banks now appear to have put this behind them and are proceeding to address a swelling backlog of homes with mortgages that have gone unpaid, something that lenders are seeing more of as the economy struggles and unemployment remains high.
Credit agencies report that 5.88 percent of homeowners missed two or more payments, an early sign of possible foreclosure, up from 5.82 percent in the second quarter of 2011.
The number of U.S. homeowners underwater on their mortgage, owing more than their homes are worth, is yet another potential source of trouble for lenders.
As of June 30, some 22.5 percent of all U.S. homes had a mortgage that was under water, or 10.9 million properties. Another 2.4 million borrowers had less than 5 percent equity in their home.
In some states, the number of homeowners put on notice by banks for missing payments far exceeded the national average for October.
According to RealtyTrac, Florida posted a 28 percent jump in October from September in homes receiving an initial default notice. Pennsylvania saw a 50 percent increase and Indiana registered a 61 percent gain.
In spite of registering a 34 percent drop in foreclosure activity overall, Nevada still registered the highest foreclosure rate in the nation for October, with one in every 180 households receiving a foreclosure-related notice.
Lenders took back 67,624 properties in October, up 4 percent from the previous month, but down 27 percent from a year earlier.
© 2011, Catholic Online. Distributed by NEWS CONSORTIUM.
- - -
Pope Benedict XVI's Prayer Intentions for January 2013
General Intention: The Faith of Christians. That in this Year of Faith Christians may deepen their knowledge of the mystery of Christ and witness joyfully to the gift of faith in him.
Missionary Intention: Middle Eastern Christians. That the Christian communities of the Middle East, often discriminated against, may receive from the Holy Spirit the strength of fidelity and perseverance.
Keywords: Foreclosure, real estate, home sales, robo-signing
Rate This Article
Leave a Comment
More Business & Economics News
- China, India, Brazil could dominate global investment by 2030
- Unemployment in U.S. comes roaring back - in a big way
- Criminally unfair? Why disgraced Enron CEO Skilling could see freedom sooner than you think
- Berkshire Hathaway Inc. hits first quarter record profit at 51 percent
- China and Japan now hold record amounts of Obama debt
- Does shift to mobile mean Facebook's salad days are done? Not at all
- U.S. annual growth rate slowest since 1929, start of Great Depression
- Prosperity gap between races in U.S. widened during recession
- Here's what's wrong with the Koch brothers buying the Tribune
- Fr. Paul Schenck: Finding Living Faith on Catechetical Sunday
- The Movie Yellow: Incest as 'Normal' and Cassavates's Slides Into the World of Woes
- The Chicago School Teachers Strike Reveals the Need For School Choice
- The Sexual Barbarians and the Dissolution of Culture
- The Happy Priest Challenges Us to Ask: Who is Jesus to Me?
- Michael Coren on Canadian Public Schools: Teachers, leave those kids alone
- We Cannot Ignore Our Consciences: Cardinal Dolan On Religious Liberty
- In the Face of Danger, Successor of Peter Travels to Lebanon as a Messenger of Peace
- Reflections on the Dignity and Vocation of Women: Who or What?
Disclaimer: The columns, articles, advertisers claims and any other features provided on Catholic Online Business & Economics are provided for personal finance and investment information and are not to be construed as investment advice. Under no circumstances does the information in this content represent a recommendation to buy, sell or hold any security. The views and opinions expressed in an article or column are the author's own and not necessarily those of Catholic Online and there is no implied endorsement by Catholic Online of any advice or trading strategy.