Auctions fuel us foreclosures

Investors and bargain hunters buying up properties at auction have helped to fuel a rise in the number of US foreclosures.

Foreclosure filings jumped 15 per cent in October 2014 compared to September 2014, according to RealtyTrac. While activity remains 8 per cent down year-on-year, the monthly increase was the largest month-on-month rise since March 2010.

At the same time, the number of auctions scheduled for the month surged 24 per cent from the previous month and 7 per cent from the previous year to the highest level since May 2013.

"There has been an average 8 percent monthly uptick in scheduled foreclosure auctions in October as banks try to get ahead of the usual holiday foreclosure moratoriums," explains Daren Blomquist, vice president at RealtyTrac. "But the sheer magnitude of the increase this year demonstrates there is more than just a seasonal pattern at work. Distressed properties that have been in a holding pattern for years are finally being cleared for landing at the foreclosure auction."