Foreclosure filings in the U.S. increased 29 percent on a year-over-year basis in September, but fell 4 percent as compared to August (a record high month).
Mounting foreclosures mean U.S. home prices probably will resume falling, analysts from Amherst Securities Group LP in New York said Sept. 23. A “shadow inventory” of 7 million properties are in the foreclosure process or likely to be seized, up from 1.27 million in 2005, they said.
The pace of prime and so-called alt-A loan defaults is accelerating as subprime defaults slow, Standard & Poor’s analysts led by Diane Westerback said yesterday in a report. Prime loans are those made to borrowers with the best credit records while alt-A loans are considered riskier because they were often granted without documenting the borrower’s income.
For the third quarter U.S. foreclosure filings jumped 23 percent year-over-year.
∙ U.S. Foreclosure Filings Jump 23% to Record in Third Quarter [Bloomberg]
∙ Subprime And Alt-A Statistics By County: The Feds Mortgage Map [SocketSite]