Foreclosures And Short Sales Still Pausing From the Robo-signing Scandal

Foreclosure filings dropped 21% in November from the previous month as lenders continued to review procedures for more signs of documentation problems, according to RealtyTrac.

There were 262,339 filings in the month, which was also down 14% from a year ago. For the first time since February 2009, filings slipped below 300,000. One in every 492 homes received either a default notice, scheduled auction or a bank repossession.

“While part of the decrease can be attributed to a seasonal drop of 7% to 10% that typically occurs in November, fallout from the foreclosure robo-signing controversy forced lenders and servicers to hit the pause button on many foreclosures while they scrambled to revamp their internal procedures and revise or resubmit questionable paperwork,” RealtyTrac CEO James Saccacio said in Housing Wire.

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