Robosigning Backlash May Have Led to Near 10 Percent Drop in Bank Repos

November 11, 2010 No Comments »


Last month, foreclosure filings were reported on 332,172 properties nationwide, according to RealtyTrac.

That’s down four percent from the previous month and nearly the same amount reported in October 2009.

A total of 100,575 properties received default notices (NODs), the first step in the foreclosure process, prompted by missed mortgage payments.

NODs fell two percent from September and 19 percent from October 2009, the ninth straight month default notices have declined on a year-over-year basis.

Meanwhile, mortgage lenders foreclosed on 93,236 properties during the month, a nine percent decline from the record high set a month earlier, but still 21 percent higher than a year earlier.

“October marks the 20th consecutive month where over 300,000 U.S. homeowners received a foreclosure notice,” said James J. Saccacio, chief executive officer at RealtyTrac, in a press release.

“The numbers probably would have been higher except for the fallout from the recent ‘robo-signing‘ controversy — which is the most likely reason for the 9 percent monthly drop in REOs we saw from September to October and which may result in further decreases in November.”

Bank repos (REOs) fell month-over month in 33 states and DC, while 14 states posted year-over-year decreases.

Lenders have foreclosed on more than 91,000 properties on average each month this year, so yes, people are losing their homes…

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