Foreclosures Jump 21 Percent in Third Quarter

Even though banks gave troubled homeowners a short reprieve for the holidays, foreclosure rates jumped 21 percent in the third quarter as they revamped their processing practices.

In the last months of 2010, major banks came under scrutiny for the way in which they handled foreclosure documents.  In some cases people were subjected to wrongful foreclosure because of fraudulent documents. For some of these homeowners were able to save their homes through the assistance of a foreclosure attorney.

The Office of the Comptroller of the Currency said the increase in foreclosure can also be attributed to banks have exhausted alternatives to foreclosure and are now moving troubled loans through the system.

Mortgage modifications are one way which a homeowner can avoid foreclosure. A foreclosure lawyer can be consulted to determine if a troubled mortgage holder is eligible for a modification.

Although foreclosure rates increased, they dropped 11.8 percent from the third quarter last year.

Bruce Krueger, a mortgage specialist for the OCC, told Reuters that he expects new foreclosures to stay at or near the 21 percent rate for the next five quarters.

High unemployment and slow economic growth is weighing heavily on every sector. The housing sector is not showing many signs of a healthy recovery. Troubled homeowners have few options to prevent the banks form seizing their homes. A foreclosure attorney will exhaust all these avenues and make it possible for a person to stay in their home.