October featured the highest monthly percent increase in foreclosure starts since August 2011, according to RealtyTrac's U.S. Home Sales Report released Thursday.
During that month, the foreclosure process began for 48,605 properties, an increase of 12% from the month before. While this was the highest monthly percent increase in quite some time, the figure remained 14% below the level seen a year ago.
Overall, RealtyTrac reported that foreclosure filings, including default notices, scheduled auctions and bank repossessions, went up 6% to 115,134 properties in October from the month prior. Again, while this figure was pushed higher by the increase in foreclosure starts, the figure was 6% lower than the previous year.
Bank repossessions on the other hand fell by 9% month-to-month in October to 36,582 properties. This figure, however, was actually higher than last year's by 31%.
"We've seen a seasonal increase in foreclosure starts in October for the past five consecutive years, so it's not too surprising to see the monthly increase this October," said Daren Blomquist, vice president at RealtyTrac, in a Nov. 11 news release. "However, the 12% increase this October is more than double the average 5% monthly increase in the past five Octobers, and the even more dramatic monthly increases in some states is certainly a concern. The upward trend in foreclosure starts in those states in some cases could be an indication of fissures in economic fundamentals driving more distress and in other cases is more likely an indication of long-term delinquencies finally entering the foreclosure pipeline."
