Number of repossessed homes drops 9%

Associated Press

LOS ANGELES

The number of U.S. homes repossessed by lenders last month fell by the sharpest margin this year, as several major lenders temporarily halted most or all of their foreclosures amid allegations thousands of foreclosures were handled improperly.

Home repossessions dropped 9 percent from September to October, foreclosure-listing firm RealtyTrac Inc. said today.

The decline represents the first significant hitch in a foreclosure steamroller that’s had lenders on pace to seize more than 1 million homes this year.

In recent weeks, some lenders that had suspended taking action against borrowers severely behind in payments have announced plans to resume doing so, though at a more- measured pace, in an attempt to ensure there aren’t any flaws in the process.

That means the number of homes lost to foreclosure should begin picking up again but at a much slower pace.

“We will still see some softness in the numbers in November, just because of the lag time from when you announce something like this and when you can actually enact it and then reverse it,” said Rick Sharga, a senior vice president at RealtyTrac.