Industry NewsMarkets & Economy

Robo-signing curtails foreclosure sales in Western states

Sales at public auction drop 39% in 2-month period
Published on Dec 14, 2010

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by CareyBot

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 resume