“While foreclosure activity in September and the third quarter continued to register well below levels from a year ago, there is evidence that this temporary downward trend is about to change direction, with foreclosure activity slowly beginning to ramp back up,” says James Saccacio, RealtyTrac chief executive.
It looks as if the foreclosure trend is starting to change directions for the worse again. Following three consecutive quarterly decreases, foreclosure filings reversed trend in the third quarter, inching up slightly by less than 1 percent, RealtyTrac reports.
“This marginal increase in overall foreclosure activity was fueled by a 14 percent jump in new default notices, indicating that lenders are cautiously throwing more wood into the foreclosure fireplace after spending months spent trying to clear the chimney of sloppily filed foreclosures,” says Saccacio.
One reason why the foreclosure trend is taking it’s time to turn is the increased time frame it is taking banks to get through the foreclosure process. Banks are taking an AVERAGE of 366 days to from start to finish in the foreclosure process — that’s up from an average of 318 days during the second quarter, according to RealtyTrac.