Thursday, October 13, 2011

Sharp rise in foreclosures as banks move in

More U.S. homes are entering the foreclosure process, but they're taking ever longer to get sold or repossessed by lenders.

The number of U.S. homes that received a first-time default notice during the July to September quarter increased 14 percent compared to the second quarter of the year, RealtyTrac Inc. said Thursday.

That increase signals banks are moving more aggressively now against borrowers who have fallen behind on their mortgage payments than they have since industrywide foreclosure processing problems emerged last fall. Those problems resulted in a sharp drop in foreclosure activity this year.

The surge in default notices means homeowners who haven't kept up their mortgage payments could now end up on the foreclosure path sooner. more