Foreclosure starts reached 217,955 units in August, an 18% sequential jump, and the first time since March that the reading was north of 200,000, according to new figures compiled by the Hope Now alliance.
The servicing group said the spike may signal a reversal of the slowdown in foreclosure starts that occurred over the past three quarters.
“We understand that unemployment, medical hardships and other financial issues have deeply affected the nation's homeowners,” said Hope Now executive director Faith Schwartz.
“Many people have fallen behind on their mortgage payments,” she said, “But it is important to continue to convey the message that mortgage servicers are working tirelessly with their customers. Whether it is through localized outreach events or regional bricks and mortar centers, there are opportunities for homeowners to get one-on-one mortgage assistance.”
Foreclosure starts peaked during the third quarter of 2010 at 709,000 actions, just about the time the robo-signing scandals became national news. A regulatory crackdown ensued with foreclosure starts drifting down to 534,200 units in the second quarter of this year.
Hope Now also reported Wednesday that foreclosure sales rose to 67,600 units in August, up 5% in the month from July. Delinquent loans (60 days or more past due) were virtually unchanged month over month.
Figures released by the Hope Now alliance also show that servicers completed 55,800 proprietary modifications in August, up slightly from 55,700 in July.
