Foreclosure sales spiked in January, indicating that many across the country are still struggling in the slow economy and may benefit from debt relief.
The LPS Mortgage Monitor reported that foreclosure sales rose to 91,000 in January, up 29 percent from the previous month. The number of foreclosure starts also increased by 28 percent, and starts for repeat foreclosures hit an all-time high of 47 percent.
The agency suggested that the increase could suggest that a backlog of proceedings have finally started to move forward.
Foreclosure sales had dropped off in the fall 2010 after problems with banks’ documentation practices surfaced. Sales had remained flat through 2011.
The biggest increase in foreclosure sales occurred in the 24 “judicial states” – states where banks must get a judge’s permission before foreclosing on a home. Foreclosure sales in these states were up 51 percent over the previous month.
North Carolina is a non-judicial state.
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