Foreclosure Freeze Update: Impact Less Than Expected On October Foreclosures
Wondering how the foreclosure freezes affected foreclosures in October? According to one foreclosure expert, the impact was less than expected on October foreclosures.
Foreclosure Truth Blog reported foreclosure filings were less impacted than expected by the foreclosure freeze of several major U.S. banks in October.
Foreclosure filings by Bank of America dropped slightly just after their announcement, but began picking up the following week.
Despite the limited impact of the announced suspensions, Notices of Default filings were generally down for the month (state-by-state details are available on the Foreclosure Truth website).
"Despite a short-term impact to foreclosure sales, the latest foreclosure scandal will likely lead to little more than a new scam perpetrated on those who have already lost their home," says Sean O'Toole, CEO and Founder of ForeclosureRadar.com, and author of the Foreclosure Truth Blog.
"Much like the cottage industry of loan modification consultants that took up-front fees and provided little in return, we are now seeing [foreclosure] consultants promising to overturn foreclosure sales, despite any experience in actually doing so," he added.
Foreclosure Truth Blog highlighted numbers from western states and found, overall, states had declining cancellations in October.
- Arizona. Notice of Trustee Sale filings dropped 12.6 percent in October from September, and were down 15.0 percent from the prior year. After a steady rise last year, the October inventory of Bank Owned (REO) properties was flat, which was likely helped by the 27.0 percent drop in foreclosures that went back to the bank.
