US Foreclosures Fall in October as Processing Stalls

At least 94, 000 homes were foreclosed by banks in October, slightly lower by 9 percent compared to the previous month as the so-called “robo-signing” controversy stalled filing processes.

A new data released by real estate research firm RealtyTrac showed a 9 percent drop in the number of foreclosed homes in the United States in October as document processing stalled due to questionable paperwork.

Based on the record, some 93, 236 homes were foreclosed by banks in October, compared to more than 100, 000 properties closed in September. Also, there were only 332, 172 foreclosure filings in October, or some 4 percent lower compared to the previous month and about the same level in 2009.

According to RealtyTrac chief executive James Saccacio, the numbers would have been higher if not for the so-called “robo-signing” controversy in real estate foreclosure process.

Asked whether the downward trend would continue in November, Saccacio did not reply.

Meanwhile, the data showed that the states of Florida, Nevada, and Arizona continued to post the highest foreclosure rates – half of the foreclosure activities were from the states of California, Illinois, Arizona, Michigan, and Florida.

According to Saccacio, at least one in every 79 homes in Nevada received foreclosure filing during the period, or more than five times the national average. Florida, on the other hand, recorded that at least one in every 155 housing units receive similar filings.

But despite the stall in foreclosure activities, RealtyTrac vice-president Rick Sharga warned that foreclosures this year would hit record levels, adding that the delay could only be extended by next month.


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