Foreclosures up in third quarter

Lenders are finally starting to draw up their backlogs of foreclosures, according to recent data RealtyTrac, but these days, these properties are embedded in a longer process.

In the third quarter of this year, foreclosure filings — default notices, composed of scheduled auctions and Bank repossessions — rose slightly by 0.3 percent from the previous quarter. While that growth is not stellar, is important as it is the first increase after four consecutive quarterly declines.

First time default notices jumped up most, 14 percent, a sign that the banks are ready to pursue more aggressively foreclosures on the rise again. And how it sounds weird that it might actually be a good thing.

Banks dramatically pulled back on processing foreclosures last fall as scandal ' robo-signature ' forced them to look more closely at their paperwork. That caused major delays and created a huge backlog of foreclosures. And it is generally believed by analysts that the housing market did not really recover until lenders to work through their inventory of foreclosures.

"Banks are beginning to process foreclosures again after the time to get their paperwork in order. Have made the care that they needed to do, "said RealtyTrac chief executive, James Saccacio, as quoted in an article by Reuters. "Now there is this wave of returning and more defaults are being processed."

So even if foreclosure filings is still down significantly from last year, the fact that they are on the rise may be good for the real estate market in the long run, as it means that the recovery process is back on track.

It may take a while for the exclusion, however, be processed quickly. RealtyTrac has reported that the average time for a property to be in foreclosure (by default the first warning to the Bank's recovery) has increased to 336 11.2 days or months. In the second quarter is was only 318 days or months 10.6. That period may shrink again as banks ramp up their machines to foreclosure.

Amber Nelson on October 15, 2011 in mortgage news, real estate information

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