Could the rise signal a new industry trend?
Foreclosure filings, including default notices, scheduled auctions and bank repossessions, were reported on 317,171 U.S. properties during the third quarter, marking the first quarterly increase in three years, according to RealtyTrac's latest September and third quarter Foreclosure Market Report. However, foreclosure filings were down 16% from a year ago but up 0.42% from the previous quarter.
The quarterly increase in overall foreclosure activity was driven by a 2% increase in default notices and a 7% quarterly increase in scheduled foreclosure auctions. Meanwhile bank repossessions decreased 12% from the previous quarter.
“September foreclosure activity was back to pre-housing bubble levels nationwide, in large part thanks to a continued slide in bank repossessions,” said Daren Blomquist, vice president at RealtyTrac. “However, a recent rise in scheduled foreclosure auctions in many markets across the country shows lenders are continuing to clean house of lingering delinquent loans. This rise in scheduled auctions foreshadows a corresponding rise in bank repossessions and auction sales to third party buyers in the coming months.”
A total of 106,866 U.S. properties had foreclosure filings in September, down 9% from the previous month and down 19% from a year ago to the lowest level since July 2006 — a 98-month low. September marked the 48th consecutive month where U.S. foreclosure activity decreased on a year-over-year basis.
Click the image above to watch Realty Trac's summary of foreclosure activity during the third quarter.
