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Foreclosure inventories growing in states that allow judicial foreclosure

LPS: Fewer homes entering process, but pipeline is clogged

The percentage of homes in the foreclosure process continued to climb in September, even as delinquencies and foreclosure starts declined, according to the latest report from data aggregator Lender Processing Services Inc.While fewer homes are entering the foreclosure pipeline, there's been an even more drastic slowdown in homes coming out the other end, due in large part to the "robo-signing" controversy, which has slowed the pace at which lenders can repossess homes and put them back on the market.LPS said foreclosure starts were down 20 percent in September from a year ago, to 220,273, slightly below the three-year average. But foreclosure starts continue to outnumber foreclosure sales by a factor of more than three to one, reflecting the fact many homes are tied up in the system for months or years after lenders initiate foreclosure proceedings.Foreclosure inventories continue to grow in judicial foreclosure states where courts handle foreclosure proceedings, with lenders...

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