According to an industry trade group, home foreclosure filings rose in the 3rd quarter, as recent declines in the rate of new foreclosures came to an end. The Mortgage Bankers Association reported that foreclosures started for 1.08% of outstanding home loans, up from 0.96% in the second quarter.
Even though the rate of homeowners who are delinquent in their mortgages dropped, the jump in foreclosures still came. Those only 30 days late making payments improved to 3.19%, the lowest level since the second quarter of 2007. And those 60 and 90 days or more late in making payments also declined, bringing the percentage of delinquent loans not in foreclosure to under 8%.
But the Mortgage Bankers Association said increased foreclosure filings by several big lenders led to the upturn in homes in foreclosure. Experts have speculated that this upturn could be partly due to these lenders working on their loan documentation that stopped some foreclosures.
An executive at Realty Trac, a company who also tracks foreclosure activity, stated that the foreclosure increases are related to the lenders work towards correcting paperwork and processing problems.
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