U.S. Foreclosures up 7 Percent in October, Hit Seven-Month High

U.S. foreclosure filings increased by 7 percent in October to a seven-month high, according to data from RealtyTrac.

Nationwide, 230,678 properties had default notices, auction or repossession, up from 214,855 in September. One in every 563 housing units had a foreclosure filing during October.

The rise was attributed to lenders raising volume after delays related to the robosigning scandal.

The October foreclosure numbers continue to show strong signs that foreclosure activity is coming out of the rain delay we've been in for the past year as lenders corrected foreclosure paperwork and processing problems, said James Saccacio, CEO of RealtyTrac, in a statement.

However, recent state court rulings and new state laws keep changing the rules of the foreclosure game on the fly, creating more uncertainty in the housing market and threatening to prolong the road to a robust real estate recovery.

The rate of foreclosures was still below October 2010 levels, according to RealtyTrac. Default notices totaled 77,733 properties in October, up 10 percent from September, but 31 percent less than October 2010. Foreclosure auctions were scheduled for 85,321 properties in October, up 8 percent from September, but down 43 percent from the previous year. Lenders repossessed 67,624 properties in October, up 4 percent from September and 27 percent below last year.

Nevada had the highest state foreclosure rate in the country for the 58th straight month, with one in every 180 Nevada housing units affected, over three times the national average. However, Las Vegas, the center of a major speculative housing boom, saw a 36 percent decrease in foreclosure activity compared to September. Las Vegas dropped from the metro area with the highest foreclosure rate in the country to the fifth-highest, although its foreclosure rate is still three times the national average.

California's default notices increased 17 percent to 29,240 default notices, giving it the second-highest foreclosure rate among states, with one in every 243 housing units affected. Stockton, Calif. had the highest foreclosure rate in the country among metro areas, and five other California cities were in the top 10 foreclosure rates for metro areas.

Arizona had the third-highest foreclosure rate among states, with one in every 259 housing units in foreclosure, while Florida was forth and Michigan was fifth.