Morning Minute: Jump in judicial foreclosure auctions causes a monthly bump in U.S. foreclosure activity

U.S. foreclosure activity was up 2 percent in October — though down 28 percent annually — compared to the month before, but RealtyTrac attributes part of the increase to a jump in judicial auctions in states where foreclosures must go through the courts. Judicial foreclosure auctions were up 7 percent from a year ago, marking the 16th consecutive month of annual increases, according to RealtyTrac’s  “U.S. Foreclosure Market Report for October.”

The Chicago area saw a 30 percent month-to-month increase in foreclosure filings but remained lower than a year, the Chicago Tribune reports. Illinois, which is a judicial foreclosure state, continues to be one of five states with the highest foreclosure rates.

RealtyTrac Vice President Daren Blomquist said the backlog of delayed judicial foreclosures that have been working through the pipeline are now being scheduled for auction.

“Lenders are likely moving these properties more rapidly to the public auction given that there is strong demand from institutional buy-to-rent investors at the auction and that rising home prices mean more of the loan losses can be recouped, either by selling to an investor at the auction or by repossessing the property and reselling as bank owned,” Blomquist said.

 

Other headlines:

Chicago-area foreclosure filings rise in October – Chicago Tribune

Fewer US homes repossessed by lenders in October – WAND

Foreclosure activity drops 38 percent in McHenry County – Northwest Herald

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