The following was reported in ForeclosureRadar.com’s monthly report:
The headline foreclosure news in October was the suspension of foreclosures by a handful of lenders, after certain procedures were called into question. While the announcements initially focused on 23 judicial foreclosure states outside of our coverage area, Ally (GMAC), PNC and Bank of America all later announced that they would be suspending foreclosures nationally. The week after the announcements, we saw evidence of those suspensions on Tuesday, October 12; after the Monday holiday. Ally restarted foreclosures just a week later on October 18; but neither Bank of America nor PNC have resumed foreclosure sales as of November 15th.
Foreclosure sales dropped dramatically across our coverage area as a result, though slight declines by other lenders would have likely led to a drop in October’s foreclosure sales regardless. It should be noted that ForeclosureRadar monitors foreclosure sales at the time of the foreclosure auction, providing far more current data than other services which track Trustee’s Deeds that are filed weeks later.
Foreclosure filings were less impacted by the announced suspensions. Filings by Bank of America dropped slightly just after their announcement, but began picking up the following week. PNC appears to have largely stopped new filings, but they typically represent less than 2 percent of filings, so their impact was minimal. Despite the limited impact of announced suspensions, Notices of Default filings were generally down.”Despite a short-term impact to foreclosure sales, the latest foreclosure scandal will likely lead to little more than a new scam perpetrated on those who have already lost their home,” says Sean O’Toole, CEO and Founder of ForeclosureRadar.com. “Much like the cottage industry of loan modification consultants that took up-front fees and provided little in return, we are now seeing consultants promising to overturn foreclosure sales, despite any experience in actually doing so.”
Notice of Trustee Sale filings dropped 12.9 percent in October from September, and were down 15.0 percent from the prior year. After a steady rise last year, the October inventory of Bank Owned (REO) properties was flat, which was likely helped by the 27.0 percent drop in foreclosures that went Back to the Bank. Properties Sold to a 3rd Party (typically investors), also dropped 26.5 percent in October from the prior month, as foreclosure sales were impacted by the foreclosure suspensions.