US Homes Lost to Foreclosure Drops 9 Pct in Oct, 2010

According to an article in MercuryNews.com on Nov 22, 2010, By ALEX VEIGA AP Real Estate Writer

Banks have seized more than 909,000 homes through the first 10 months of the year and, even with the delays caused by the temporary foreclosure freeze, are on pace to take back more than 1 million homes this year.

“It’s almost impossible to imagine that we wouldn’t surpass that number at this point,” Sharga said.

Economic woes, such as unemployment or reduced income, continue to be the main catalysts for foreclosures.

In all, 93,236 homes were taken back by lenders in October, down from a peak 102,134 in September, said RealtyTrac, which tracks notices for defaults, scheduled home auctions and home repossessions—warnings that can lead up to a home eventually being lost to foreclosure.

Despite the sharp drop, October’s tally was still 21 percent higher than a year ago. Lenders have foreclosed on an average of more than 91,000 properties each month this year.

Florida bucked that trend, with repossessions rising 1 percent from September. They nearly doubled versus October last year.

“There was probably a whole batch of foreclosures that were already in process when the freeze was announced that led to Florida’s numbers being not affected as much in October as some of the other states,” Sharga said.

The number of properties receiving an initial default notice—the first step in the foreclosure process—slipped 2 percent last month from September, and was down 19 percent versus October last year, RealtyTrac said.

Initial defaults have fallen on an annual basis the past nine months as lenders have taken steps to manage the levels of distressed properties they have on their books.

Carolyn Secor is a Clearwater bankruptcy attorney and Clearwater foreclosure attorney serving Palm Harbor, New Port Richey, Oldsmar, Tarpon Springs, Seminole, St. Petersburg, and the Tampa Bay area.

If you would like more information on our practice, please consult our website at www.bankruptcyfortampa.com or call 727-254-1704.