The number of homes entering foreclosure rose significantly between July and September signaling that banks have cleared up their paperwork practices.
According to RealtyTrac, the number of people, who received default notices between July and September, rose 14 percent over the second quarter. This means banks are more aggressively pursuing homeowners, who have fallen behind on their mortgage payments, and they could enter foreclosure more quickly than in previous months. Fighting seizure or trying to modify their loans is possible with the assistance of a foreclosure attorney.
The initial slowdown came in the wake of investigations into the way major lenders processed foreclosure paperwork. But the increase in default notices indicates that banks have cleared up the practices that launched the investigations, which began last fall.
The rise between July and September is significant because it is the first increase in five consecutive quarters. Although this is bad news for homeowners, who must hire foreclosure awyers, this could mean that the housing market is on its way to recovery. Experts agree that in order for the market to recover the backlog of troubled homes must be cleared out.
Though banks are clearing up the backlog, the process is still a long one, in the third quarter it took an average of 11.2 months for a home to go through the complete process. This gives homeowners and foreclosure attorneys time to challenge the notice and take the necessary steps to keep their homes.
