Foreclosure Activities Rise Again in Q3

October 19 00:00 2011

New York, October 19 ( – Foreclosure activities have soared again over the last three months, after a lull in the second-quarter of the year, which was a precursor to the storm. A real estate information service has revealed that the number of homeowners falling in the foreclosure process has reached prior levels.

During the third quarter, a total of 71,275 Notices of Default were recorded at county recorders offices, rising 25.9% from 56,633 for the prior three months and down 14.4% from 83,261 in third-quarter 2010. The number had peaked in first-quarter 2009 at 135,431. During the first-quarter 2011 it stood at 68,239 and in fourth-quarter 2010 it was 69,799. Last quarter’s 71,275 NoDs, which mark the first step in the formal foreclosure process, jumped back to levels seen earlier this year and late last year.

John Walsh, DataQuick president said that “The way it looks right now, it’s reasonable to expect default filings to run at a somewhat higher level than we saw earlier this year. Obviously, some lenders and loan servicers have begun to plow through their backlogs of delinquent loans more aggressively.”

For almost three years, the majority of loans going into default are still from the 2005-2007 period and the median origination quarter for defaulted loans is still third-quarter 2006. Walsh commented, “Figuring out what’s actually going on when it comes to foreclosures can be a logistical nightmare.”