(Reuters) – The number of homes taken over by banks topped 100,000 for the first time in September, though foreclosures are expected to slow in coming months as lenders work through questionable paperwork, real estate data company RealtyTrac said on Thursday.
Banks foreclosed on 102,134 properties in September, the first single month above the century mark, RealtyTrac said. There were 347,420 total foreclosure filings in September, 3 percent higher than August and 1 percent higher than a year earlier.
Some say there will be a dip in the 4th quarter, but only because on Wednesday, all 50 states launched a joint investigation of the mortgage industry after widespread reports of mortgage industry officials signing foreclosure documents without knowing their contents.
For the quarter, there were 930,437 foreclosure filings, an increase of 4 percent over the prior three months and 1 percent lower than a year ago. One in every 139 homes received a foreclosure filing in the third quarter.
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.
Looking at total numbers of foreclosures, California was worst, with 191,016, followed by Florida, Arizona, Illinois and Michigan. Combined, the five states accounted for half of all foreclosures last quarter.
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How Bad will it Get?
In congressional testimony last month Michael Barr, the Treasury Department’s assistant secretary for financial institutions, said more than 6 million families could face foreclosure over the next three years.
There are more than 6,600 home foreclosure filings per day.
Nearly two million foreclosures already this year
Every 13 seconds in America, there is another foreclosure filing.
People are no longer defaulting simply because of a change in the payment structure of their loan. They are defaulting because of lost jobs or reduced hours or pay.
Celia Chen of Moody’s Economy.com says nationwide home prices won’t regain the peak levels they reached in 2006 until 2020.
Top 10 Foreclosure States
Navada: Rate: One in every 62 households
Florida: Rate: One in every 140 households
California: Rate: One in every 144 households
Arizona: Rate: One in every 150 households
Michigan: Rate: One in every 234 households
Idaho: Rate: One in every 241 households
Utah: Rate: One in every 282 households
Colorado: Rate: One in every 329 households
Illinois: Rate: One in every 401 households
Georgia Rate: One in every 332 households
