NEW YORK (
) -- Despite apparent delays in foreclosures by large mortgage servicers, the major tracker of foreclosure data hasn't seen much of a change in October.
"We've been tracking our October numbers and really haven't seen any meaningful drop in foreclosure activity, month over month," Rick Sharga, senior vice president of RealtyTrac told
in an interview on Wednesday.
Earlier this week,
Bank of America
resumed foreclosure proceedings after having implemented temporary "freezes" while they reviewed thousands of potentially flawed documents.
PNC Financial Services
are also reviewing their paperwork.
Attorneys general in all 50 states, as well as top federal regulators, have also embarked on a widespread review of major mortgage servicers, including those firms and
The investigations and moratoriums came after court proceedings showed that major servicers had engaged in the apparently widespread practice of "robosigning." Employees had signed off on thousands of foreclosure documents under oath without having properly vetted the information.
But despite all the negative buzz surrounding the issue, foreclosure proceedings seem to be largely on track. The threat that long-term delays in foreclosure proceedings could also delay any improvement in the housing market seems minimal.
Although there could be effects in data over the next couple of weeks, Sharga says "we may not see much of a fall-off at all." RealtyTrac expects a modest decline in activity, followed by some accelerated rates of foreclosure in the first quarter of 2011.
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"It could be that the effects of whatever freezes took place won't hit for another couple weeks just because there's a lag time in public record recording. But we haven't seen it yet and the fact that both Bank of America and GMAC have announced that basically a resumption of forclosure activities really does suggest that we may not see much of a fall-off at all.
"It looks very much like by the time we get to the second quarter of next year, the effect of the robosigning issues will really be in the rear-view mirror," he says, quipping: "Thawed out pretty quickly, didn't it?"
-- Written by Lauren Tara LaCapra in New York
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