Road to Depression

Mortgage default filings up 33 percent!

on . Posted in Road to Depression

NEW YORK - September 15, 2011 - Default notices sent to delinquent U.S. homeowners surged 33% in August from the previous month, a sign that lenders are speeding up the foreclosure process after almost a year of delays, RealtyTrac Inc. said.

First-time default notices were filed on 78,880 properties, the most in nine months, the Irvine, Kalifornia-based data seller said today in a report. Total foreclosure filings, which also include auction and home-seizure notices, increased 7% from a four-year low in July, to 228,098. One in 570 homes received a notice during August.

On a year-over-year basis, foreclosure filings dropped for an 11th straight month after claims of “robo-signing”, or pushing through documents that weren’t verified, spurred an investigation by state attorneys general in October. The jump in default notices from July - the biggest monthly gain in four years - shows that banks’ paperwork delays are easing even as industry talks to settle the probe continue, said RealtyTrac.

“The industry seems to be hitting the reset button and the logjam may finally be breaking up,” Rick Sharga, senior vice president pf RealtyTrac, said in a telephone interview. He said foreclosure filings this year have been artificially low.

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