According to the foreclosure market report - released by
RealtyTrac - there was a marginal rise in foreclosure activity
for Oct 2013, with a higher number of residential properties
entered the foreclosure process from the prior month.
Nevertheless, on a year over year basis, foreclosure activity
continued to decline.
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According to this leading online marketplace of foreclosure
properties, foreclosure filings were up 2% from Sep 2013 but down
28% from Oct 2012. This brought the aggregate number of
properties receiving default, auction or repossession notices to
133,919 in October.
Foreclosure starts grew 2% from Sep 2013 but fell 34% from Oct
2012 to 58,939 properties in October. This was the 15th
consecutive month of falling foreclosure starts on an annual
basis. However, foreclosure starts increased in 22 states from
the prior month.
Additionally, scheduled judicial foreclosure auctions (NFS)
increased 10% from the prior month and 7% from the prior-year
month. Moreover, this was the 16th consecutive month of rising
NFS on an annual basis.
However, bank repossessions (REOs) were down 1% from Sep 2013 and
29% from Oct 2012 with 37,775 properties. On an aggregate, REO
activity rose in 15 states on an annual basis.
According to the trend so far, this year is expected to end with
nearly 480,000 completed foreclosures, down approximately 28%
from the 2012 level. Further, foreclosures are now expected to
normalize - around 50,000 foreclosures per month - very soon.
This will, in turn, help to limit the adverse impact of
foreclosures on property values.
Further, as the major mortgage servicers -
JPMorgan Chase & Co.
Bank of America Corp
), Ally Financial Inc. and
Wells Fargo & Company
) - continue to adjust to the new regulations related to
foreclosure filings and also clear their pipeline of foreclosed
properties, foreclosure activity is expected to rise in judicial
Though the foreclosure crisis can be said to be nearly over, its
effects are expected to linger for some time. Hence, there are
chances of volatility in foreclosure activities in the coming
months as the backlog in judicial states continues to enter the
Moreover, the stabilizing housing sector, increase in jobs, and
affordable mortgage rates will likely make homeowners avoid
foreclosures. Additionally, given the lower number of properties
entering the foreclosure procedure, this will eventually lead to
further rebound in housing sector.