Foreclosure Filings Fall 34% as Lenders Extend Paperwork Review

[dkf]

Foreclosure filings in the U.S. declined 34 percent in the third quarter from a year earlier as lenders reviewed paperwork related to delinquent loans and home seizures, according to RealtyTrac Inc.

A total of 610,337 properties received notices of default, auction or repossession, down from 930,437 a year earlier and up from 608,235 in the second quarter, the Irvine, California-based data seller said today in a report. One in every 213 U.S. households got a filing.

Banks slowed foreclosure actions a year ago after allegations of “robo-signing,” or pushing through unverified default documents, surfaced nationwide. The claims spurred a probe by state attorneys general and ongoing settlement talks with lenders. The delays have resulted in 12 straight months of year-over-year filing declines, with September down 38 percent.

“We’ve been on a giant play-pause button for a year, but a lot of thoroughness occurred once the problems were identified,” James J. Saccacio, RealtyTrac’s chief executive officer, said in a telephone interview. “We might begin to see things unclog.”

http://www.bloomberg.com/news/2011-10-13/foreclosure-filings-fall-34-as-lenders-extend-paperwork-review.html