Third-quarter Foreclosure Filings Increase 4 Percent

Despite government efforts to provide mortgage debt relief programs to consumers, foreclosure filings in the U.S. continue to rise. The most recent data from RealtyTrac shows foreclosure filings - including bank repossessions, scheduled auctions and default notices - grew 4 percent during the third quarter of 2010.

The third quarter filing rate accounts for a 1 percent decrease from the foreclosure rate one year ago. According to the data, one in every 139 homes received a foreclosure filing during Q3.

"Lenders foreclosed on a record number of properties in September and in the third quarter, taking a bite out of the backlog of distressed properties where the foreclosure process was delayed by foreclosure prevention efforts over the past 20 months," RealtyTrac CEO James Saccacio said. "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."

The most current foreclosure crisis surrounding fraudulent and faulty paperwork is expected to negatively impact distressed homeowners and buyers, especially as title issues come into play.