Meanwhile, foreclosure petitions, which represent the first step in the foreclosure process, shot up in September compared to the summer months.
A total of 9,609 foreclosure deeds have been recorded from January through September, up from 5,593 during the same period in 2007. Foreclosure deeds rose 18.6 percent to 798 in September from 673 in September 2007. Still, the number of foreclosure deeds filed has declined for four consecutive months and September represented the fewest number of deeds recorded in any month this year.
Lenders filed 2,258 petitions to foreclose in September, a 12 percent decline from 2,566 in September 2007. But September’s foreclosure petitions were more than double the 943 petitions filed in August and more than four times the 502 petitions in July. The sharp increase comes after a temporary decline that occurred because of a new state law that went into effect May 1 which postponed the first step of the foreclosure for many delinquent homeowners. The law requires lenders intending to foreclosure to give borrowers 90 days to cure a mortgage default.