Posted: Oct 13, 2011 2:42 AM by Trovette Tottress
LOS ANGELES (AP) - Foreclosure activity was up between July and September, suggesting that banks are getting more aggressive against borrowers who are behind on their payments. RealtyTrac says the number of U.S. homes that received a first-time default notice during the July to September quarter increased 14 percent compared to the second quarter.
The third-quarter increase in initial defaults was largely a product of a spike in August. In September, default notices were off 10 percent from August. Industry wide foreclosure processing problems that emerged last fall had resulted in a sharp drop in foreclosure activity.
While banks appear more willing to start the foreclosure countdown on borrowers, they haven't put a dent in the overall length of the foreclosure process. A pickup in foreclosure activity could mean a potentially faster turnaround for the U.S. housing market, which is being hampered by a glut of potential foreclosures.