U.S. bank regulators reported today that foreclosures throughout the U.S. jumped in the third quarter. Furthermore, banks continued their efforts to keep borrowers in their homes but were less successful as the housing market continues to struggle with defaults on the rise once again.
One possible reason for an increase in foreclosures is that banks have run out of options to keep many delinquent borrowers in their homes through loan modifications and other programs.
With a 31.2 percent jump over the previous quarter, newly initiated foreclosures increased to 382,000 in the third quarter which is a 3.7 percent gain from 2009. Also, the number of processed foreclosures increased to 1.2 million which is a 4.5 percent increase from the second quarter and a 10.1 percent increase from 2009.
Loan modifications processed through the Obama administration's leading foreclosure prevention effort, Home Affordable Modification Program (HAMP), fell by almost 46 percent in the third quarter.