Industry NewsMarkets & Economy

Robo-signing curtails foreclosure sales in Western states

Sales at public auction drop 39% in 2-month period

Don't miss the real estate event of the summer
Join 4,000 real estate pros at Connect SF, Aug 7‑11, 2017

Voluntary foreclosure freezes by some major lenders have contributed to a sharp decline in sales of foreclosed homes at public auctions, according to a report by foreclosure data company ForeclosureRadar. ForeclosureRadar's monthly reports cover California, Arizona, Nevada, Oregon and Washington. The reports break down foreclosure filings and inventories by state, county, city and ZIP code. When employees of some major banks admitted to signing foreclosure documents without proper verification (so-called "robo-signing"), some lenders in ForeclosureRadar's coverage area, namely Ally (GMAC), PNC Financial and Bank of America, announced national foreclosure freezes in early October. Ally resumed foreclosure sales on Oct. 18 and Bank of America resumed foreclosing the week of Dec. 6, ForeclosureRadar said. "The robo-signing controversy continued to play a major role in foreclosure activity through the end of November. A number of foreclosure stats have dropped...