Dive Brief:
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The number of foreclosure filings spiked by 15% in October, the biggest monthly increase since 2010, when foreclosures were at their peak, according to RealtyTrac.
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Although one in every 1,069 U.S. homes is in some state of foreclosure, the report noted that foreclosure activity remained 8% lower than a year ago.
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The number of properties scheduled for foreclosure auction—the final step before the homeowner loses the house—also ballooned last month by 24% from the previous month and by 7% since last October, the report revealed.
Dive Insight:
While some are pointing to the increase in foreclosure filings as a sign the housing market is in more trouble than most economists are admitting, the situation might not be as dire as it seems. October traditionally is a bad month for foreclosures because banks often step up foreclosure activity in the fall before they suspend it for the winter holidays.
Still, the spike is substantial enough to indicate more than a seasonal blip. Daren Blomquist, a RealtyTrac vice president, said some of the volume involves long-time distressed properties that have recently been cleared for foreclosure.