The likely result of servicers' voluntary foreclosure freezes, bank repossessions tumbled 9% in October, according to the latest figures from RealtyTrac. Overall foreclosure filings – which include default notices, scheduled auctions and bank repossessions – were reported on 332,172 properties last month – a 4% decrease from September. Bank repossessions decreased month-over-month in 33 states and the District of Columbia, while 14 states posted year-over-year decreases in REOs.
"The numbers probably would have been higher, except for the fallout from the recent robo-signing controversy,’ says James J. Saccacio, RealtyTrac's CEO. Servicers' self-imposed foreclosure moratoria – several of which have ended already – may cause further decreases in filing totals for November, Saccacio adds.
Default notices fell 2% from September and 19% from October 2009, making last month the ninth consecutive month in which default notices dropped on a year-over-year basis.
However, default notices were still up on a monthly basis in several states, including Illinois, where the number of lis pendens rose 24%. Default notices decreased on a monthly basis in California, Nevada and Michigan.
Foreclosure auctions were scheduled for the first time on a total of 138,361 U.S. properties in October – a 3% decrease from the previous month.