Bank Repossessions and Foreclosure Auctions Hit New Record Numbers

By: Bill Waters
10/14/2010 10:33 AM ET

Bank repossessions and foreclosure auctions hit new record numbers. The foreclosure auctions, along with bank repossessions, have hit record levels in the third quarter. RealtyTrac reports 372,445 foreclosure auctions along in July, August and September.

In addition, there were 288,345 properties were repossessed by lenders over the same time period. Overall foreclosure filings edged up to 930,437 in the third quarter, a 4% increase from the previous quarter. One in every 139 homeowners received a foreclosure filing during those three months.

Bank repossessions, or REOs, also are on the rise. In September, a record 102,134 homes were taken back by banks. It’s the first time repos have topped 100,000 in a single month.

The uptick is not expected to last, “We could see a chilling effect on the overall housing market,” RealtyTrac CEO James Saccacio said in a statement. Several major loan servicers have halted foreclosure sales pending a review of documents. Nevada had the nation’s highest foreclosure rate, up 1% from earlier, for the 15th quarter in a row. One in every 29 Nevada homes received a foreclosure filing during the third quarter.