October 14, 2010: In the third quarter, one in 29 homes in Nevada received a foreclosure filing, a 1% increase from the previous quarter but down 20% from a year ago.
“Lenders foreclosed on a record number of properties in September and in the third quarter, taking a bite out of the backlog of distressed properties where the foreclosure process was delayed by foreclosure prevention efforts over the past 20 months,” said James Saccacio, CEO of RealtyTrac.
But Saccacio expects REO numbers to drop in the fourth quarter as several lenders work through recent foreclosure problems. Bank of America (BAC: 12.52 -5.79%), JPMorgan Chase (JPM: 38.28 -3.92%) and Ally Financial (GJM: 22.48 -3.35%) each suspended foreclosures in 23 states, where, according to RealtyTrac, 40% of all foreclosure activity takes place.
“If the lenders can resolve the documentation issue quickly, then we would expect the temporary lull in foreclosure activity to be followed by a parallel spike in activity as many of the delayed foreclosures move forward in the foreclosure process,” according to Housing Wire.