With questionable foreclosure filings at the center of media attention, it’s no surprise that a record number of homeowners lost their homes in the third quarter. According to a report released by RealtyTrac on Thursday, bank repossessions and foreclosure auctions in the months of July, August and September rose to 102,134 and 372,445, respectively, leading some to believe that invalid documentation could be contributing to the significant loss.
Total Foreclosures Increase Significantly
According to the report, the total number of foreclosure filings increased to 930,437, which is a 4 percent jump from the previous quarter. As a result, one in every 139 homeowners received a foreclosure filing just in those three months.
Some states that have suffered the most include Nevada and California. Nevada currently has the highest number of foreclosed homes with one in every 29 homes receiving a foreclosure filing in the third quarter. California also suffered significantly with a total of 191,016 in the quarter.
While job loss is said to be a major contributor in the record number of foreclosures we’ve witnessed, some think that the increase could have something to do with invalid filings. With investigations underway, it’s now possible we could see an abrupt decrease in foreclosures in the common months.
Document Reviews Will Likely Slow Future Filings
While foreclosures have hit record numbers, future filings are expected to slow or even halt completely depending on how document reviews of current filings are handled. Currently, all 50 states have started probing major mortgage loan servicers to determine whether they’ve submitted invalid documents in an effort to initiate or speed up foreclosure filings. A complete foreclosure freeze has also been recommended to help get the mess in order.
In the middle of all of this is the Interstate Recognition of Notorizations Act that was expected to by signed in the very near future, a bill that would require courts to accept out-of-state documents without validating them. However, now that states have launched mortgage probes, it is very likely the bill won’t be signed into law anytime soon.
