"We expect to see a dip in those bank repossessions -- and possibly earlier stages of the foreclosure process -- in the fourth quarter as several major lenders have halted foreclosure sales in some states while they review irregularities in foreclosure-processing documentation that has been called into question in recent weeks."
Impact of lender foreclosure halts
"If the lenders can resolve the documentation issue quickly, then we would expect the temporary lull in foreclosure activity to be followed by a parallel spike in activity as many of the delayed foreclosures move forward in the foreclosure process," Saccacio said.
Preliminary RealtyTrac foreclosure sales numbers for September show that overall foreclosure sales -- including pre-foreclosure sales and REO sales -- accounted for 31 percent of all sales during the month. REO sales alone accounted for 18 percent of all sales.
Foreclosure Activity by Type
Bank repossessions (REOs) also hit a record high for the report in the third quarter, with a total of 288,345 properties repossessed by the lender during the quarter -- an increase of 7 percent from the previous quarter and an increase of 22 percent from the third quarter of 2009.
Nevada, Arizona, Florida post top state foreclosure rates in third quarter
One in every 29 Nevada housing units received a foreclosure filing during the quarter, almost five times the national average. Nevada foreclosure activity increased nearly 1 percent from the previous quarter but was down nearly 20 percent from the third quarter of 2009.
With one in every 70 housing units receiving a foreclosure filing during the third quarter, California documented the nation's fourth highest foreclosure rate, followed by Idaho, with one in every 86 housing units receiving a foreclosure filing during the quarter.
Florida foreclosure activity increased 12 percent from the previous quarter and was flat from a year ago, giving the state the second largest foreclosure activity total, with 157,026 properties receiving a foreclosure filing.