By Kathy Ross
Banks and mortgage companies formally foreclosed 102,134 residential properties during September setting a new all-time record for a month, according to RealtyTrac. It was the first time that foreclosures topped 100,000 in a single month.
All foreclosure filings, including notices of default and other notices in the long and complicated procedure were reported on 347,420 U.S. properties in September, an increase of nearly 3% over last 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 RealtyTrac CEO James Saccacio. “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.”
Preliminary sales figures for September show that foreclosure sales, including bank assisted short sales and REOs accounted for 31% of sales during the month. REOs accounted for 18% alone.
During the quarter 269,647 properties received default notices, a decrease of 1% over the previous quarter. Foreclosure auctions were scheduled for the first time on a total of 372,445 properties during the quarter, representing the largest number scheduled in five years.
Bank repossessions also reached a new record in the quarter with 288,345 properties taken back by lenders across the country during the quarter.
Nevada maintained its position with the nation’s highest state foreclosure rate in the third quarter, despite a year-over-year decline in foreclosure activity. 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, while Florida posted the nation’s third highest state foreclosure rate for the fourth straight quarter.