This September saw a record number of homes being foreclosed upon as lenders carry on working through the distressed properties in their inventory. September foreclosures increased 3% from August and reached a high of 347,420 properties.
Arguably in response to the increasing number of homes in foreclosure and the spike in foreclosure fraud that has occurred during this real estate bust, California has joined 48 other states who are investigating foreclosure practices. California's non-judicial foreclosure process may be to blame for lenders not complying with the law to contact homeowners to discuss other options before foreclosing. California Atty. Gen. Jerry Brown announced the investigation and explained that he wants it to be determined if lenders are in compliance.
Links to full articles from HousingWire and the LA Times: Money & Company Blog are below:
Housing Wire: Foreclosures reach record high in 3Q
Money & Company: California among 49 states to jointly investigate foreclosure practices