Foreclosures Climbed In October

U.S. foreclosures in October
were up 2% from the month prior, according to a new report from
RealtyTrac.

Foreclosure starts — properties that began the foreclosure process — were up 2% as well but still down 34% from a year ago.

“The backlog of delayed judicial foreclosures continues to make its way through the pipeline, with many of these properties now being scheduled for the public auction after starting the foreclosure process last year or earlier this year,” Daren Blomquist, vice president at RealtyTrac, said in a statement.

In 15 states, bank repossessions increased from last year, “including Oklahoma (up 59 per cent), Maryland (up 54 per cent), Virginia (up 47 per cent), Ohio (up 30 per cent), and Washington (up 30 per cent),” according to the report.

“Lenders are likely moving these properties more rapidly to the public auction given that there is strong demand from institutional buy-to-rent investors at the auction and that rising home prices mean more of the loan losses can be recouped, either by selling to an investor at the auction or by repossessing the property and reselling as bank owned,” Blomquist said.

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